USD/CNH poised to extend the consolidation range within the 6.4240-6.4800 range in the next weeks.
Key Quotes
24-hour view: “Our expectations for USD to ‘trade sideways between 6.4400 and 6.4610’ last Friday was wrong as it plummeted to 6.4261. The decline was, however, short-lived, as USD rebounded strongly to end the day little changed at 6.4455 (-0.08%). The rapid swings have resulted in a mixed outlook. For today, USD could trade within a relatively broad a range of 6.4330/6.4600.”
Next 1-3 weeks: “Our latest narrative was from last Wednesday (08 Sep, spot at 6.4590) where we highlighted that the outlook of USD is mixed and it could trade within a 6.4300/6.4800 range for a period of time. USD plummeted to 6.4261 on Friday (10 Sep) before rebounding quickly. The choppy price actions offer no clarity and the outlook for USD remains mixed. Further choppy price actions are not ruled out but in view of the increased volatility, USD could trade in a broader range of 6.4240/6.4800.”
