USD/CNH stays consolidative between 7.0500 and 7.1250 – UOB

FX Strategists at UOB Group noted USD/CNH is predicted to stick to the consolidation theme in the next weeks.

Key Quotes

24-hour view: “USD traded between 7.0645 and 7.0838 last Friday (narrower than our expected 7.0650/7.0910 range) before ending the day little changed at 7.0777 (-0.06%). Momentum indicators are mostly neutral and further range trading would not be surprising. Expected range for today, 7.0650/7.0900.”

Next 1-3 weeks: “USD traded in a quiet manner for the past few days and there is not much to add to our update from Monday (15 Jun, spot at 7.0880). As highlighted, the current movement in USD is deemed as part of consolidation phase and USD is expected to trade between 7.0500 and 7.1250 for a period.”