USD/CNH could now extend the move to the 6.5150 level in the next weeks, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “USD traded between 6.4650 and 6.4780 yesterday, narrower than our expected range of 6.4600/6.4950. The quiet price actions offer no fresh clues and USD could continue to trade sideways. Expected range for today, 6.4580/6.4800.”
Next 1-3 weeks: “There is not much to add to our update from last Friday (26 Feb, spot at 6.4800). As highlighted, ‘upward momentum has been boosted’ and ‘there is room for USD to move towards 6.5150’. For now, there is no change to the ‘strong support’ level at 6.4400. A break of the ‘strong support’ would indicate the positive phase in USD that started more than a week ago has run its course.”