Extra gains in USD/CNH should meet a tough barrier at 6.9650 in the short-term horizon, argue Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: “Our expectations for USD to rise above 6.9510 did not materialize as it traded sideways in a range of 6.9216/6.9469. The price actions are likely part of a consolidation and today, we expect USD to trade between 6.9150 and 6.9450.”

Next 1-3 weeks: “Our latest narrative from two days ago (26 Apr, spot at 6.9370) still stands. As highlighted, upward momentum in USD has improved further but the major resistance at 6.9650 might not come into view soon. Overall, USD is expected to stay underpinned in the coming days as long as it stays above 6.8950 (no change in ‘strong support’ level).”