USD/CNH is predicted to trade within the 6.3400-6.3900 range amidst the current mixed outlook, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘there is scope for USD to edge higher to 6.3800’. We added, ‘a sustained rise above this level appears unlikely’. Our view was not wrong as USD rose to 6.3833 before easing off to close largely unchanged at 6.3753 (+0.02%). Upward pressure has waned and for today, USD is likely to trade sideways, expected to be between 6.3680 and 6.3830.”

Next 1-3 weeks: “Our view from yesterday (04 Jan, spot at 6.3735) still stands. As highlighted, the outlook for USD is mixed and it could trade between 6.3400 and 6.3900 for now.”