Chinese Yuan: Tight ranges persist against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank strategists Quek Ser Leang and Lee Sue Ann describe USD/CNH as confined to a narrow intraday band around 6.7000, with a slightly firmer tone in the very short term. Over 1–3 weeks they still expect range trading, while their 1–3 month view points to a gradual drift lower as long as key resistance near 6.7815 caps the upside.

UOB sees capped upside for USD/CNH

"24-HOUR VIEW: While we indicated yesterday that USD “could edge lower,” we were of the view that “it is likely to stay within a 6.7000/6.7100 range.” USD subsequently traded within a tight range, rising to 6.7056 before dipping to 6.6997. The underlying tone has firmed somewhat, and today, USD could edge higher, but it is still likely to stay within a 6.7000/6.7100 range."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (29 Sep, spot at 6.7110), we highlighted that “for the time being, we expect USD to trade in a range between 6.6950 and 6.7270.” We continue to hold the same view for now."

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