UOB Group’s FX Strategists expect USD/CNH to remain side-lined in the next weks.

Key Quotes

24-hour view: “Our expectations for USD to ‘edge higher’ last Friday did not materialize as it traded sideways between 6.3525 and 6.3695 before closing little changed at 6.3668 (+0.05%). Momentum indicators are mostly neutral and further sideway-trading would not be surprising. Expected range for today, 6.3550/6.3730.”

Next 1-3 weeks: “There is no change in our view from last 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.”