USD/CNH: Downside risks look alleviated – UOB

According to FX Strategists at UOB Group, USD/CNH is now seen sticking to the 6.4240/6.4800 range in the next weeks.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways within a range of 6.4420/6.4650’. However, USD popped to a high of 6.4704 before dropping back down to end the day slightly higher at 6.4550 (+0.09%). The relatively choppy price actions have resulted in a mixed outlook. For today, USD could trade between 6.4460 and 6.4660.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (06 Oct, spot at 6.4500). As highlighted, the recent downside risk has dissipated and USD is likely to trade between 6.4240 and 6.4800 for a period of time.”