According to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang, USD/CNH remains poised to extend the 6.6500-6.8000 range in the next weeks.

Key Quotes

24-hour view: “The sharp drop in USD to 6.6548 yesterday came as a surprise (we were expecting USD to consolidate). The rebound from the low amidst oversold conditions suggests that USD is unlikely to weaken further. For today, USD is more likely to trade between 6.6580 and 6.7050.”

Next 1-3 weeks: “There is no change in our view from yesterday (30 May, spot at 6.7200). As highlighted, the recent choppy price actions have resulted in a mixed outlook and USD could trade within a broad range of 6.6500/6.8000 for now.”