Further range bound trading is forecast in USD/CNH in the next weeks, suggested FX Strategists at UOB Group.
24-hour view: “Yesterday, we expected USD to ‘trade sideways within a range of 6.3680/6.3830’. USD subsequently traded in a quiet manner between 6.3661 and 6.3768 before closing unchanged at 6.3755. The quiet price actions offer no fresh clues and further sideway-trading would not be surprising. Expected range for today, 6.3670/6.3830.”
Next 1-3 weeks: “Our view from Tuesday (04 Jan, spot at 6.3735) still stands. As highlighted, the outlook for USD is mixed and it could trade between 6.3400 and 6.3900 for now.”