The outlook for USD/CNH remains mixed and the pair is seen extending the 6.3050-6.3450 range in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “We expected USD to ‘consolidate and trade between 6.3050 and 6.3260’ yesterday. USD subsequently dipped to 6.3062, rebounded to 6.3348 before easing off to close at 6.3239 (+0.17%). The movement is still viewed as part of a consolidation phase and USD is expected to trade within a range of 6.3080/6.3350.”

Next 1-3 weeks: “Yesterday (24 Feb, spot at 6.3230), we highlighted that downward momentum is beginning to build again but USD has to close below 6.3050 before a sustained decline is likely. USD subsequently dropped to 6.3062 before rebounding to take out our ‘strong resistance’ level at 6.3330 (high of 6.3348). The choppy price actions have resulted in a mixed outlook and USD could trade between 6.3050 and 6.3450 for now.”