UOB Group’s FX Strategists see USD/CNH still navigating the 6.3400-6.3805 range in the next weeks.

Key Quotes

24-hour view: “Our expectations for USD to ‘trade sideways between 6.3500 and 6.3700’ yesterday were incorrect as it popped to a high of 6.3760 before dropping back down to end the day little changed at 6.3658 (+0.08%). Upward momentum has barely improved and a sustained advance above 6.3760 is unlikely. For today, USD is more likely to trade sideways between 6.3620 and 6.3760.”

Next 1-3 weeks: “There is no change in our view from Monday (07 Feb, spot at 6.3600). We continue to view the current movement as part of a consolidation phase and expect USD to trade between 6.3400 and 6.3805 for now.”