According to United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann, the Chinese Yuan (CNH) is expected to remain in a narrow trading range against the US Dollar (USD) in the near term. For the next 24 hours, they forecast the USD/CNH pair to trade between 6.7130 and 6.7230, following a session where the pair rose to 6.7266, dropped to 6.7162, and closed largely unchanged at 6.7178, representing a slight decline of 0.07% [1].
In their 1–3 week outlook, the analysts maintain that while there has been a slight increase in downward momentum, it is not sufficient to indicate a sustained decline. Instead, they expect the USD/CNH to edge lower within a broader range of 6.7050 to 6.7300 [1]. For a more significant recovery in the USD/CNH pair over the next 1–3 months, UOB notes that the pair would need to break above the 21-week exponential moving average (EMA) at 6.8430 [1].
No major market-moving reactions or significant volatility are highlighted in the analysis, and the overall tone suggests a continuation of range-bound trading in the short to medium term [1].
CONCLUSION
UOB analysts anticipate the Chinese Yuan will continue to trade in a tight range against the US Dollar, with no clear signs of a breakout or sustained trend in the near term. Market impact is expected to be low unless the USD/CNH pair breaks above the 21-week EMA at 6.8430.