USD/CNH is still seen within the 7.2500-7.3300 range for the time being, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.
24-hour view: Yesterday, we expected USD to trade sideways between 7.2800 and 7.3050. USD then traded in a wider range than expected (7.2800/7.3105). The price actions still appear to be ‘consolidative’, and today, we expect USD to trade between 7.2750 and 7.3040.
Next 1-3 weeks: Our latest narrative was from last Thursday (24 Aug, spot at 7.2840) when we highlighted that, “the recent buildup in upward momentum has eased, and USD is likely to trade in a range of 7.2500/7.3300 for the time being.” There is no change in our view.