USD/CNH is still seen within the 6.5000-6.8000 range in the next weeks, commented FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “USD soared to a high of 6.7849 last before dropping sharply to end the day lower by 0.69% (6.7220). The rapid loss in upward momentum suggests that 6.7879 is a short-term top. In other words, the risk is not on the upside. Overall, USD is likely to consolidate and trade between 6.6900 and 6.7500.”

Next 1-3 weeks: “In our latest update form last Thursday (26 May, spot at 6.7050), we held the view that USD has moved into a consolidation phase and is likely to trade between 6.6500 and 6.7500. We did not expect the surge in volatility as USD spiked to a high of 6.7849 last Friday before dropping sharply. The choppy price actions have resulted in a mixed outlook and USD could trade within a broad range of 6.6500/6.8000 for now.”