Further consolidation in USD/CNH remains in place for the timebeing, likely between 6.7350 and 6.8000, noted FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Our view for USD to ‘strengthen further to 6.8000’ was incorrect as it whipsawed between 6.7494 and 6.7945 before closing slightly lower at 6.7768. The volatile price actions have resulted in a mixed outlook. Further choppy movement is not ruled out for today, likely between 6.7500 and 6.7910.’

Next 1-3 weeks: “Yesterday (02 Aug, spot at 6.7900), we held the view that USD is likely to advance to 6.8100. Our view was invalidated quickly as USD dropped below our ‘strong support’ level at 6.7500 (low has been 6.7494). It appears that USD is not ready to head higher. From here, USD is likely trade between 6.7350 and 6.8000.”