USD/CNH poised for further consolidation – UOB

USD/CNH is expected to remain side-lined within the 6.9000-6.9700 range for the time being, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.9150 and 6.9450’ yesterday. USD subsequently rose to 6.9480, dropped to 6.9109 before rebounding to close at 6.9197 (-0.26%). The underlying tone has weakened and USD is likely to edge lower for today. That said, any weakness is unlikely to break the major support at 6.9000. Resistance is at 6.9260 followed by 6.9360.”

Next 1-3 weeks: “Yesterday (12 Sep, spot at 6.9180), we indicated that the recent month-long rally in has ended and we expect USD to consolidate and trade between 6.9000 and 6.9700. There is no change in our view for now. Looking ahead, if USD breaks clearly below 6.9000, it could trigger a pullback to 6.8700.”