UOB Group’s FX Strategists noted USD/CNH could now navigate within the 6.3530-6.4000 range in the next weeks.

Key Quotes

24-hour view: “We expected USD to ‘trade sideways between 6.3790 and 6.3950’ yesterday. However, USD dropped to 6.3715 before closing on a soft note at 6.3736. While downward momentum has not improved by much, the decline in USD could extend to 6.3660 first before stabilizing. Resistance is at 6.3830 followed by 6.3900.”

Next 1-3 weeks: “On Monday (28 Mar, spot at 6.3850), we highlighted that while upward momentum is beginning to build, USD has to break and close above 6.4105 before a sustained advance is likely. We added, ‘the chance for USD to close above 6.4105 would remain intact as long as USD does not move below 6.3750’. USD breached 6.3750 yesterday and dropped to 6.3715. The build-up in momentum has fizzled out. The current movement appears to be part of a consolidation and USD is likely to trade between 6.3530 and 6.4000 for now.”