USD/CNH is expected to maintain the consolidation in place within the 7.1500-7.2500 range for the time being, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: We expected USD to trade in a range of 7.1655/7.2000 yesterday. USD then traded in a range of 7.1790/7.2132 before closing little changed at 7.1858 (-0.02%). The underlying tone has softened, and USD is likely to edge lower today. However, any decline is unlikely to break below the major support at 7.1500 (minor support is at 7.1655). Resistance is at 7.1950, followed by 7.2100.
Next 1-3 weeks: Last Wednesday (19 Jul, spot at 7.1950), we highlighted that after the recent sharp drop; USD is unlikely to weaken further. We expected USD to trade in a range, probably between 7.1500 and 7.2500. There is no change in our view.