USD/CNH remains focused on 6.8550 – UOB

Further losses look not favoured while USD/CNH remains above 6.8550, noted Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘is likely to edge lower but a clear break of 6.8550 is unlikely’. However, USD traded in a muted manner between 6.8654 and 6.8854 before closing largely unchanged at 6.8762 (+0.02%). The quiet price actions offer no fresh clues and today, we expect USD to trade sideways between 6.8600 and 6.8900.”

Next 1-3 weeks: “Our update from yesterday (21 Mar, spot at 6.8800) is still valid. As highlighted, downward momentum is waning rapidly and USD has to break and stay below 6.8550 in the next couple of days or it is unlikely to weaken further. Conversely, a breach of 6.9100 (‘strong resistance’ level) would suggest USD could trade sideways for a period of time.”