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7 Jul 2023
USD/CNH expected to keep the current consolidation – UOB
In the view of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, USD/CNH should maintain the consolidative mood in the short-term horizon.
Key Quotes
24-hour view: Yesterday, we held the view that USD could test the resistance at 7.2800 before a pullback is likely. However, USD did not quite test 7.2800 as it traded between 7.2425 and 7.2734. The current price actions are likely part of a consolidation phase and today, we expect USD to trade in a range of 7.2400/7.2700.
Next 1-3 weeks: There is no change in our view from Wednesday (05 Jul, spot at 7.2280). As highlighted, the recent USD strength has ended USD is likely to trade in a range 7.1800/7.2800 for now.