According to FX Strategists at UOB Group, USD/CNH risks a deeper pullback on a close below 6.3000.
24-hour view: “Our expectations for USD to ‘edge higher to 6.3380’ did not materialize as it traded sideways within a tight range of 6.3206/6.3268. The quiet price actions offer no clues and USD could continue to trade sideways, expected to be between 6.3150 and 6.3350.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (01 Mar, spot at 6.3100). As highlighted, the underlying tone has softened but USD has to close below 6.3000 before a sustained decline is likely. The chance for USD to close below 6.3000 is not high for now but it would remain intact as long as USD does not move above 6.3450.”