Analysts at UOB Group, Quek Ser Leang and Peter Chia, expect the US Dollar (USD) to remain range-bound against the Chinese Yuan (CNH) in the near term, following recent volatile price action.
Short-Term View (24-Hour Outlook):
On Friday, UOB anticipated USD/CNH to trade within a 7.1300–7.1480 range. However, the pair saw unexpected volatility, dropping to 7.1250 before surging to 7.1500.
- This sharp movement appears overstretched, and with today’s modest pullback at the open, a further upside is considered unlikely for now.
- As such, the USD/CNH pair is expected to consolidate within a narrower range of 7.1280–7.1500 over the course of the day.
Medium-Term View (1–3 Weeks):
Last Friday (October 10), UOB shifted its stance on USD/CNH from bullish to neutral, noting that:
“The USD is likely to remain in a consolidation phase between 7.1200 and 7.1550.”
- Although Friday’s sharp rebound shows some renewed bullish momentum, it isn’t strong enough to suggest a sustained upward breakout.
- Therefore, the analysts maintain a neutral outlook, with the expectation that USD/CNH will continue to trade sideways within the 7.1200–7.1550 range in the coming sessions.
Summary:
- Immediate range: 7.1280–7.1500
- Wider expected range (1–3 weeks): 7.1200–7.1550
- Bias remains neutral amid mixed momentum signals.