Further range bound theme appears on the table for USD/CNH in the next few weeks, note Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: Yesterday, USD rose briefly to 7.2442, dropped to 7.2075 and then closed at 7.2281 (-0.12%). There is no clear directional bias for now. Today, we expect USD to trade sideways between 7.2000 and 7.2400. 

Next 1-3 weeks: Our most recent narrative was from last Wednesday (02 Aug, spot at 7.1800), wherein USD is likely to trade in a range of 7.1300/7.2450 for the time being. We continue to hold the same view for now