USDCNH: Further consolidation in the pipeline – UOB

USDCNH continues to be seen within the 7.0600-7.2100 range in the short-term horizon, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways between 7.1200 and 7.1700’ last Friday. USD subsequently traded within a range of 7.1143/7.1615. The underlying tone has firmed somewhat and we expect USD to edge higher today. However, any advance is expected to face strong resistance at 7.1620. Support is at 7.1300, a breach of 7.1150 would indicate the current mild upward pressure has eased.”

Next 1-3 weeks: “We continue to hold the same view as last Friday (18 Nov, spot at 7.1460) where USD has likely moved into a consolidation phase. We expect USD to trade sideways for now, likely to be between 7.0600 and 7.2100.”