USD/CNH: No changes to the range bound trade – UOB

USD/CNH is still predicted to extend the 6.7350-6.8000 consolidation theme for the next week, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways within a range of 6.7470/6.7700’ yesterday. USD subsequently traded between 6.7496 and 6.7678 before closing little changed at 6.7523 (-0.09%). The underlying tone has softened somewhat and USD is likely to edge lower. That said, any weakness is likely limited to a test 6.7400 (minor support is at 6.7450). On the upside, a break of 6.7660 would indicate the current mild downward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view as Wednesday (03 Aug, spot at 6.7750) where is USD is likely to trade between 6.7350 and 6.8000 for now.”