Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group note there is still room for further gains in USD/CNH in the near term.

Key Quotes

24-hour view: “We highlighted yesterday that ‘The choppy movement is likely part of a broad sideways range and we expect USD to trade within a range of 7.2500/7.3400’. USD plunged briefly to a low of 7.2614 in NY trade before surging to a high of 7.3480. The rapid rise has scope to extend but a break of 7.3600 is unlikely. Support is at 7.3200, followed by 7.3000.

Next 1-3 weeks: “Our update from yesterday (02 Nov, spot at 7.3020) still stands. As highlighted, while upward momentum has not improved, as long as 7.2400 (no change in ‘strong support’ level from yesterday) is not breached, there is still chance for USD to head higher. That said, a break of 7.3745 appears unlikely.”