UOB Group’s FX Strategists noted USD/CNH faces prospects for further upside once 6.5000 is cleared.
24-hour view: “USD traded between 6.4758 and 6.4850 last Friday, narrower than our expected range of 6.4720/6.4880. The quiet price actions offer no fresh clues and USD could continue to trade sideways. Expected range for today, 6.4740/6.4880.”
Next 1-3 weeks: “We have held the same since last Tuesday (10 Aug, spot at 6.4830) where USD ‘has to close above the major resistance at 6.5000 before a sustained advance can be expected’. There is no change in our view for now but USD has to move above 6.5000 within these few days or a break of 6.4650 would indicate that the current build-up in momentum has fizzled out.”
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