USD/CNH is likely to trade in a range between 7.1760 and 7.1900 – Scotiabank

US Dollar (USD) is likely to trade in a range between 7.1760 and 7.1900. In the longer run, USD is expected to trade in a range of 7.1730/7.2000, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

USD is expected to trade in a range

24-HOUR VIEW: "Yesterday, we expected USD to 'continue to expect range trading, but the softer underlying tone suggests USD is likely to trade in a lower range of 7.1760/7.1890.' USD then traded between 7.1725 and 7.1867, closing marginally higher by 0.01% at 7.1827. Further range trading still appears likely, probably between 7.1760 and 7.1900."

1-3 WEEKS VIEW: "In our most recent narrative from Tuesday (19 Aug, spot at 7.1850), we expected USD to 'trade in a range of 7.1730/7.2000.' Yesterday, USD dipped briefly to 7.1725 and then recovered. There is no increase in downward momentum, and we continue to hold the same view for now."