According to UOB analyst Quek Ser Leang, the Chinese Yuan is expected to consolidate in a range against the US Dollar following a recent retreat in the USD/CNH pair. After a prior rise in USD/CNH, upward momentum has now faded, with the pair anticipated to trade between 6.7950 and 6.8100 in the near term [1]. On Tuesday, the USD/CNH pair dipped to 6.7984, rose to 6.8101, and then eased to close largely unchanged at 6.8061, representing a marginal increase of +0.03% [1].
Quek Ser Leang noted that while the advance in USD/CNH had gathered momentum, any further gains are unlikely to reach last month’s high of 6.8195 unless the pair closes above the 6.8080 resistance level. The analyst emphasized that upward risk persists as long as USD/CNH holds above the 6.7830 support level, with minor support identified at 6.8000 [1].
For the 1-3 week outlook, UOB maintains that if USD/CNH closes above 6.8080, it could move higher toward the previous high of 6.8195. However, the upside risk will remain as long as the pair stays above the strong support at 6.7830 [1]. No significant market reactions or broader implications were discussed in the source article.
CONCLUSION
UOB expects the USD/CNH pair to consolidate in a narrow range, with upside risk persisting if support levels hold. The market sentiment appears neutral to slightly positive, with no major market impact anticipated in the near term.