In the opinion of UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang, USD/CNH should keep the trade between 6.8100 and 6.9200 for the time being.

Key Quotes

24-hour view: “Yesterday, we held the view that ‘the overbought advance in USD could extend but a break of 6.9000 is unlikely’. Our view was not wrong as USD pulled back from a high 6.8955. The pullback has gathered some momentum and USD is likely to trade with a downward bias today. However, any decline is unlikely to break 6.8500. Resistance is at 6.8880, followed by 6.9000.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (27 Mar, spot at 6.8700). As highlighted, the USD weakness has stabilized. The current movement is likely the early parts of a consolidation phase and USD is likely to trade between 6.8100 and 6.9200 for now.”