The 6.3400-6.3805 range is expected to prevail in USD/CNH for the time being, commented FX Strategists at UOB Group.
24-hour view: “We expected USD to trade between 6.3590 and 6.3740 yesterday. USD subsequently traded within a wider range than expected (6.3520/6.3690) before closing largely unchanged at 6.3634 (+0.03%). Despite closing largely unchanged, the underlying tone appears to have firmed somewhat and USD could edge higher from here. That said, any advance is expected to face solid resistance at 6.3750. Support is at 6.3600 followed by 6.3550.”
Next 1-3 weeks: “There is no change in our view from Monday (07 Feb, spot at 6.3600). We continue to view the current movement as part of a consolidation phase and expect USD to trade between 6.3400 and 6.3805 for now.”