Extra upside is likely if USD/CNH overcomes the 6.4000 level in the next weeks, commented FX Strategists at UOB Group Quek Ser Leang and Lee Sue Ann.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.3750 and 6.3930’ yesterday. USD subsequently traded within a narrower range than expected (6.3744/6.3899) before closing little changed at 6.3799 (-0.03%). Momentum indicators are mostly neutral and we continue to expect USD to trade between 6.3750 and 6.3930.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (18 Apr, spot at 6.3830). As highlighted, upward momentum appears to have improved somewhat but USD has to close above 6.4000 before a sustained advance is likely. At this stage, the chance for USD to close above 6.4000 is not high but it would remain intact as long as USD does not move below 6.3600 within these few days.”