Further upside in USD/CNH is expected to meet strong resistance around 6.4500, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “The sudden lift-off in USD that sent it soaring to a high of 6.4230 came as a surprise (we were expecting sideway-trading). While the rally appears to be overdone, there is scope for USD to test 6.4350 first before easing off. The major resistance at 6.4500 is unlikely to come under threat for now. Support is at 6.4100 followed by 6.4030.”

Next 1-3 weeks: “Two days ago (18 Apr, spot at 6.3830), we highlighted that upward momentum appears to have improved somewhat but USD has to close above 6.4000 before a sustained advance is likely. That said, we did not the strong surge yesterday as USD closed sharply higher by 0.60% (NY close of 6.4183), its largest 1-day advance in nine months. While the rally appears to be running ahead of itself, further USD strength would not be surprising. However, any advance is expected to face strong resistance at 6.4500. On the downside, a breach of 6.3900 (‘strong support’ level was at 6.3600 yesterday) would indicate that the current upward pressure has eased.”