There are no changes to the consolidative phase in USD/CNH for the time being, argue UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We expected USD to trade with a downward bias yesterday. However, we were of the view that “any decline is unlikely to break the major support at 7.2500.” USD did not quite trade with a downward bias as it rebounded quickly from a low of 7.2700 and ended the day little changed at 7.2917 (-0.04%). The price movements appear to be consolidative, and USD is likely to trade sideways today, probably between 7.2800 and 7.3050. 

Next 1-3 weeks: Our latest narrative was from last Thursday (24 Aug, spot at 7.2840) when we highlighted that, “the recent buildup in upward momentum has eased, and USD is likely to trade in a range of 7.2500/7.3300 for the time being.” There is no change in our view