Further upside could see USD/CNH challenging the 7.3000 region in the near term, comment Markets Strategist Quek Ser Leang and Economist Lee Sue Ann at UOB Group.

Key Quotes

24-hour view: “We did not expect the sharp pullback in USD to 7.2210 and the subsequent strong bounce from the low. While the rebound has not gained much momentum, the bias for today is on the upside. That said, a clear break of 7.2800 is unlikely (next resistance is at 7.3000). Support is at 7.2440, followed by 7.2240.”

Next 1-3 weeks: “We continue to hold the same view as yesterday (20 Oct, spot at 7.2650). As highlighted, the upside risk remains intact and there is a good chance for USD to break 7.3000. Only a break of 7.2150 (no change in ‘strong support’ level from yesterday) would indicate that the USD strength that started one week ago has ended.’