There is still room for USD/CNH to extend further the current 6.8500-6.9200 range, comment UOB Group’s Economist Lee Sue Ann and Market Strategist Quek Ser Leang.

Key Quotes

24-hour view: “We expected USD to trade sideways in a range of 6.8680/6.8950 yesterday. USD subsequently traded in a range of 6.8750/6.8963. The firm underlying tone suggests USD could test 6.9050 before the risk of a more sustained pullback increases. The major resistance at 6.9200 is unlikely to come under threat. On the downside, a breach of 6.8790 would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “USD traded sideways and in a quiet manner for the past few days. The consolidative price actions suggest further sideways trading, likely between 6.8500 and 6.9200.”