Further consolidation within the 6.6600-6.7400 range is likely in USD/CNH in the next weeks according to FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways’ yesterday and did not anticipate the spike in volatility as USD plunged briefly to 6.6688, surged to 6.7137 before easing off. The rapid rise has gathered momentum and USD is likely to head higher from here. That said, the major resistance at 6.7400 is not expected to come into the picture (there is another resistance at 6.7200). Support is at 6.6940 followed by 6.6860.”

Next 1-3 weeks: “We have expected USD to trade sideways between 6.6600 and 6.7400 since last Monday (20 Jun, spot at 6.7080). While shorter-term downward momentum has improved somewhat, there is no change in our view for now.”