USD/CNH: Expected to consolidate in a range of 7.1800/7.2000 – UOB Group

US Dollar (USD) is expected to consolidate in a range of 7.1800/7.2000. In the longer run, USD appears to have moved into a 7.1600/7.2240 range trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

USD appears to have moved into a range trading phase

24-HOUR VIEW: "While we expected USD to edge lower on Monday, we held the view that 'any decline might not be able to reach 7.1750.' After USD edged to a low of 7.1766, we stated yesterday, Tuesday, that 'the underlying tone remains soft, and today, there is a chance for USD to drop below 7.1750.' Our view was incorrect, as after dipping to a low of 7.1776, USD edged up to a high of 7.1950 before closing largely unchanged at 7.1890 (+0.06%). USD has likely entered a consolidation phase. Today, we expect USD to trade in a range of 7.1800/7.2000."

1-3 WEEKS VIEW: "In our most recent narrative from Monday (04 Aug, spot at 7.1900), we highlighted that USD 'appears to have moved into a 7.1600/7.2240 range trading phase.' USD traded in a range over the past couple of days, and we continue to hold the same view."