USD/CNH risks a move lower – UOB

USD/CNH faces further losses on a close below 6.4500, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to weaken yesterday were incorrect as it traded in a surprisingly quiet manner and within a tight range of 68 pips (between 6.4620 and 6.4688). Indicators are mostly ‘flat’ and USD is expected to trade sideways for today, likely between 6.4600 and 6.4730.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (30 Aug, spot at 6.4630). As highlighted, the downside risk has increased but USD has to close below 6.4500 before a sustained decline can be expected. The downside risk is intact as long as USD does not move above 6.4820 within these few days. Looking ahead, the next support below 6.4500 is at 6.4300.”