USD/CNH is still seen within the 6.3050-6.3450 range for the time being, noted FX Strategists at UOB Group.
24-hour view: “Yesterday, we highlighted that ‘momentum indicators are still neutral’ and we expected USD to ‘trade sideways within a range of 6.3140/6.3340’. Our view for sideway trading was not wrong even though USD traded within a narrower range than expected (6.3208/6.3305). Despite the quiet trading, upward momentum appears to be building. A break of 6.3350 could lead to a rise to 6.3450. On the downside, a breach of 6.3190 would indicate that the tentative build-up in momentum has fizzled out.”
Next 1-3 weeks: “There is not much to add to our update from Tuesday (07 Mar, spot at 6.3240). As highlighted, the outlook is mixed and USD could trade between 6.3050 and 6.3450 for now.”