Extra rangebound most likely in USD/CNH – UOB

FX Strategists at UOB Group see USD/CNH keep the consolidative fashion in the short-term horizon.

Key Quotes

24-hour view: “USD traded between 7.0878 and 7.1219 yesterday, narrower than our expected range of 7.0600/7.1300. The price action offers no fresh clues and for today, USD could trade between 7.0950 and 7.1350.”

Next 1-3 weeks: “There is not much to add to our update from last Wednesday (25 Mar, spot at 7.0700). As highlighted, USD has not been able to make much headway on the upside after surging to a high of 7.1652. For now, we continue to see chance for USD to break 7.1700 even though the odds have diminished further. However, only a break of 7.0350 (no change in ‘strong support’ level would indicate that the recent upward pressure has eased.”