USD/CNH: Downside pressure looks mitigated – UOB

Further weakness in USD/CNH seems to have now lost some momentum, suggested FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘consolidate and trade within a range of 6.3950/6.4100’ yesterday. USD subsequently traded between 6.3925 and 6.4091. Further consolidation appears likely even though the slightly weakened underlying tone suggests a lower range of 6.3880/6.4060.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Nov, spot at 6.4030). As highlighted, the recent risk for a lower USD has more or less dissipated and USD is likely to trade between 6.3800 and 6.4250 for now.”