USD/CNH: No changes to the side-lined theme so far – UOB

USD/CNH remains tilted to the continuation of the 6.8500-6.9200 range in the near term, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our expectations for USD to test 6.9050 yesterday did not materialize as it traded in a range of 6.8748/6.8942 before settling at 6.8824 (-0.17%). Downward momentum has improved a tad and USD is likely to edge lower today. As downward momentum is mild for now, any decline is unlikely to challenge the major support at 6.8500 (there is another support at 6.8650). Resistance is at 6.8840, followed by 6.8940.”

Next 1-3 weeks: “Our most recent narrative form Monday (10 Apr, spot at 6.8800) is still valid. As highlighted, the price actions of recent days appear to be consolidative and USD is likely to trade sideways between 6.8500 and 6.9200 for now.”