Yuan-US Dollar Trade Remains Confined Amid Flat Momentum
Chinese Yuan's trade against the US Dollar has remained confined within a tight intraday range, according to analysts from United Overseas Bank (UOB). Quek Ser Leang and Lee Sue Ann note that USD/CNH is still trading between 6.7400 and 6.7500 due to flat momentum indicators.
The pair's price fluctuated between 6.7423 and 6.7479 yesterday, closing at 6.7449 with a minor decrease of -0.02%. Momentum indicators remain unchanged, supporting the expectation that USD will continue to trade within this range.
In the short-term horizon of 1-3 weeks, analysts see scope for a drift lower toward 6.7300 unless strong resistance at 6.7580 is breached. On the upside, a breach of this level would indicate that the pair is likely to continue ranging instead.