UOB Group’s FX Strategists reiterated the mixed outlook for USD/CNH in the near term.
24-hour view: “USD traded between 6.4599 and 6.4729 yesterday, narrower than our expected range of 6.4525/6.4750. The movement is viewed as part of an on-going consolidation phase. In other words, USD could continue to trade sideways, expected to be between 6.4530 and 6.4750.”
Next 1-3 weeks: “Our update from last Friday (30 Jul, spot at 6.4650) still stands. As highlighted, the recent sharp but short-lived swings have resulted in a mixed outlook and USD could trade within a 6.4400/6.5000 range for now.”