There is still chance for USD/CNH to retest the 6.8000 region in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘trade between 6.7200 and 6.7800’ yesterday. USD subsequently traded within a narrower range than expected (6.7313/6.7675). The current movement still appears to be part of a consolidation and we expect USD to trade between 6.7300 and 6.7800 for today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (11 May, spot at 6.7500). As highlighted, upward momentum has waned somewhat but until there is a clear breach of 6.7100, we still see chance for one more push higher in USD to 6.8000.”