USD/CNH remains within the consolidative phase – UOB

USD/CNH remains stuck within the 6.8500-6.9200 range for the time being, note UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We noted yesterday that ‘the price actions appear to be part of a consolidation phase’ and we expected USD to trade between 6.8600 and 6.8900. Our view for USD to consolidate was not wrong even though it traded in a narrower range than expected (6.8650/6.8851) before closing little changed at 6.8838 (+0.05%). The quiet price movements offer no fresh clues and we continue to expect USD to consolidate, likely in a range of 6.8700/6.8900.”

Next 1-3 weeks: “There is not much to add to our update from Monday (17 Apr, spot at 6.8820). As highlighted, there is no clear USD direction. For the time being, USD could trade in a relatively broad range of 6.8500/6.9250.”