UOB’s Quek Ser Leang notes that USD/CNH has seen a slight pickup in downward momentum, but still expects the pair to remain range-bound. The bank now looks for a lower intraday band around 6.7820–6.7940, while its 1–3 week view stays neutral, with USD/CNH likely to trade between 6.7750 and 6.8080.

USD/CNH seen holding defined ranges

"24-HOUR VIEW: Two days ago, USD traded within a range of 6.7911/6.8025 and closed little changed at 6.7948 (+0.05%). Yesterday, we indicated that “the price action provides no fresh clues, and we continue to expect USD to trade between 6.7860 and 6.7990.” USD then traded within a range of 6.7840/6.7963 before settling at 6.7884 (-0.09%). There has been a slight increase in downward momentum, but this is likely to lead to USD trading in a lower range of 6.7820/6.7940 rather than a sustained decline."

"1-3 WEEKS VIEW: We revised our view from positive to neutral two days ago (01 Jul, spot at 6.7920). We highlighted that the recent USD “strength has come to an end.” We also highlighted that USD “is likely to trade in a range between 6.7750 and 6.8080.” We continue to hold the same view"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)