USD/CNH: Downward bias alleviated above 6.9300 – UOB

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The promoting strain round USD/CNH is predicted to mitigate on a breakout of 6.9300, mentioned UOB Group Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘seems to have moved right into a consolidation section and it’s more likely to commerce between 6.8650 and 6.9050’. USD subsequently traded between 6.8722 and 6.9139 earlier than closing barely increased at 6.8940 (+0.16%). Whereas the underlying tone has firmed considerably, the worth actions nonetheless seem like consolidative. At this time, we anticipate USD to commerce in a spread, doubtless between 6.8750 and 6.9100.”

Subsequent 1-3 weeks: “After USD fell sharply on Monday, we highlighted on Tuesday (14 Mar, spot at 6.8600) that the ‘impulsive drop in USD is more likely to proceed’. Nevertheless, USD has not been capable of make any additional headway on the draw back. Whereas the draw back threat has decreased, solely a break of 6.9300 (no change in ‘sturdy resistance’ stage) would point out that USD is just not weakening additional. Wanting forward, help stage is at 6.8350.”