USD/CNH clings to the consolidative phase so far – UOB

USD/CNH is still seen navigating the 7.2800-7.3600 range in the next few weeks, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We highlighted yesterday that “the price action appears to be part of a consolidation, and further sideways trading will not be surprising, likely in a range of 7.3100/7.3300.” USD then traded in a range that was close to our expectations (7.3097/7.3289). Momentum indicators are mostly neutral, and we continue to expect USD to trade sideways, probably between 7.3080 and 7.3310.

Next 1-3 weeks: Our update from two days (03 Sep, spot at 7.3215) still stands. As highlighted, USD is likely to trade in a range for now, probably between 7.2800 and 7.3600.