USD/CNH is still forecast to trade within the 7.0600-7.2100 range in the next weeks, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We did not expect the sharp drop in USD to 7.1330 yesterday (we were expecting sideways trading). While downward momentum is not particularly strong, USD could weaken further. That said, any decline is unlikely to break 7.1100. Resistance is at 7.1480, a breach of 7.1650 would indicate that USD is unlikely to weaken further.”

Next 1-3 weeks: “We continue to hold the same view as from last Friday (18 Nov, spot at 7.1460) where USD has likely moved into a consolidation phase. We expect USD to trade sideways for now, likely to be between 7.0600 and 7.2100.”