USD/CNH: Extra range bound remains on the cards – UOB

USD/CNH is still seen within the 6.7280-6.7800 range for the time being, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted last Friday that ‘the outlook remains mixed’ and we expected USD to ‘trade between 6.7350 and 6.7650’. USD subsequently dropped sharply but briefly to 6.7267 before rebounding to a high of 6.7585. The outlook remains mixed and USD is likely to trade sideways for today, expected to be between 6.7350 and 6.7650.”

Next 1-3 weeks: “Last Thursday (28 Jul, spot at 6.7525), we highlighted that USD is likely to consolidate and trade between 6.7280 and 6.7800. USD dropped briefly below the bottom of our expected range on Friday (low of 6.7267) before rebounding strongly. Shorter-term outlook is mixed and we continue to expect USD to consolidate and trade between 6.7280 and 6.7800 for now.”