UOB: USD/CNH May Target 6.7000 if Breaking Below 6.7200

According to UOB's Quek Ser Leang and Lee Sue Ann, the Chinese Yuan (CNH) is expected to maintain a downside bias against the US Dollar. Despite dipping to 6.7180 and closing near 6.7210, they anticipate that any further weakness will be limited within a range of 6.7150-6.7240 and not break clearly below 6.7150. However, on a 1-3 week view, the analysts warn that a sustained move under 6.7200 would open up 6.7000 as a potential target.

Over the past few weeks, UOB has held a negative USD view, and last Friday (August 21), they highlighted that downward momentum continues to increase. If the US Dollar breaks and holds below 6.7200, the next level to watch would be 6.7000. The analysts will continue to hold this view as long as 6.7340 is not breached.