FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang still see USD/CNH sticking to the 6.6600-6.7400 range for the time being.

Key Quotes

24-hour view: “Our view for USD to ‘trade between 6.6920 and 6.7250’ yesterday was incorrect as it plummeted to 6.6694 before rebounding. Despite the rapid decline, downward momentum has not improved by much. While there is scope for USD to weaken from here, a sustained decline below 6.6700 is unlikely. Resistance is at 6.6980 followed by 6.7100.”

Next 1-3 weeks: “Our update from yesterday (20 Jun, spot at 6.7080) still stands. As highlighted, the recent build-up in downward momentum has eased and USD is likely to trade between 6.6600 and 6.7400 for now. Looking ahead, a clear break of 6.6600 would indicate that USD is ready to head lower towards 6.6300.”