USD/CNH points to a 6.7500-6.8350 range – UOB

FX Strategists at UOB Group noted USD/CNH could likely move between 6.7500 and 6.8350 in the next weeks.

Key Quotes

24-hour view: “Our expectation for USD to “trade in a quiet manner” was wrong as it lurched lower and touched 6.7810 before recovering slightly. The sudden and sharp drop appears to be overdone and while a dip below 6.7800 is not ruled out, any weakness is viewed as lower trading range of 6.7750/6.8080. In other words, a sustained decline below 6.7750 is not expected.”

Next 1-3 weeks: “We have held the same view since late Thursday (24 Sep, spot at 6.8220) wherein the “rebound in USD could extend to 6.8600”. USD subsequently rose to 6.8464 and traded sideways for several days before staging a sudden sharp drop yesterday (30 Sep). Upward pressure has dissipated and from here, USD could trade sideways between 6.7500 and 6.8350 for a period of time.”