Further side-lined trading is likely in USD/CNH for the time being, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “We indicated yesterday that ‘upward momentum is building but any advance in USD is expected to face solid resistance at 6.9000’. While USD rose, it eased off from a high of 6.8883. The price actions appear to be part of a consolidation phase and USD is likely to trade between 6.8600 and 6.8900 today.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (17 Apr, spot at 6.8820). As highlighted, there is no clear USD direction. For the time being, USD could trade in a relatively broad range of 6.8500/6.9250.”