Further upside in USD/CNH could see the 6.8100 level revisited in the near term, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “We did not anticipate the strong rise in USD to 6.7905 yesterday (we were expecting USD to trade between 6.7350 and 6.7650). Strong upward momentum suggests USD could strengthen further to 6.8000, possibly 6.8100. Support is at 6.7800 followed by 6.7700.”
Next 1-3 weeks: “Our latest narrative was from last Thursday (28 Jul, spot at 6.7525) where USD is likely to consolidate and trade between 6.7280 and 6.7800. Yesterday, USD cracked 6.7800 and soared to a high of 6.7905. Strong surge in upward momentum suggests that USD is likely to advance to 6.8100. Looking ahead, a break of 6.8100 would shift the focus to the year-to-date high near 6.8390. The upside risk is intact as long as USD does not move below the ‘strong support’ level, currently at 6.7500.”