USD/CNH faces extra rangebound between 6.4730 and 6.5360 – UOB

USD/CNH is likely to trade within the 6.4730-6.5360 range in the next weeks, assessed FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectation for USD to ‘edge lower’ was incorrect as it staged a surprisingly sharp rise to 6.5142 last Friday before easing off. The rapid advance appears to be running ahead of itself and USD is unlikely to strengthen further. USD is more likely to consolidate and trade between 6.4850 and 6.5150.”

Next 1-3 weeks: “Last Thursday (11 Mar, spot at 6.5020), we highlighted that the recent positive phase has come to an end and we expected USD to ‘trade between 6.4730 and 6.5360’. USD subsequently dropped to 6.4769 before rebounding strongly on Friday. The outlook is mixed and for now, we continue to hold the same view wherein USD is likely to trade between 6.4730 and 6.5360 for a period of time.”