USD/CNH is expected to gather extra upside traction once 6.5000 is cleared, noted FX Strategists at UOB Group.
Key Quotes
24-hour view: “USD traded in a quiet manner between 6.4815 and 6.4961 before closing little changed at 6.4884. Momentum indicators are mostly neutral and USD is likely to trade sideways for today, expected to be within a 6.4780/6.4950 range.”
Next 1-3 weeks: “The current movement is viewed as part of a consolidation and USD is likely to trade sideways for now. Looking ahead, the upside risk appears to be greater but USD has to close above 6.5000 before a sustained advance can be expected. The prospect for a sustained advance is not high for now but it would remain intact as long as USD does not move below 6.4680 within these few days.”
