In view of FX Strategists at UOB Group, USD/CNH should continue to trade within the current rangebound theme in the next weeks.
24-hour view: “Instead of ‘trading sideways within a 7.0230/7.0400 range’, USD popped to a high of 7.0456 yesterday. While the advance lacks momentum, there is scope for USD to edge towards 7.0500. At this stage, a sustained rise above this level is not expected. Support is at 7.0350 followed by 7.0260”.
Next 1-3 weeks: “There is not much to add as USD traded in a quiet manner and closed unchanged at 7.0326 last Friday (29 Nov). The movement is still viewed as part of a sideway-trading. In other words, we continue to expect USD to trade between 6.9700/7.0500 for a while more”.
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