USD/CNH Trapped in Tight Trading Band as Momentum Remains Flat

Quek Ser Leang at UOB notes that the US Dollar (USD) against the Chinese Yuan (CNH) remains range-bound and directionless, trading narrowly around 6.71 with little change in momentum.

The USD/CNH pair has been stuck within a tight band, with intraday price action expected to hold between 6.7060 and 6.7160.

On a 1-3 week horizon, UOB still sees potential for the Dollar to edge higher, but any advance should stay contained within a broader 6.7040-6.7290 range.

Last Friday (11 Sep), the USD traded within a 6.7060/6.7146 range and closed little changed at 6.7093 (-0.09%).

Yesterday, we indicated that “there has been no shift in either downward or upward momentum,” and we expected USD “to trade in a range of 6.7040/6.7120.”