UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang see USD/CNH sticking to the consolidative phase for the time being.

Key Quotes

24-hour view: Yesterday, we expected USD to trade in a range of 7.1660/7.2020. USD then traded between 7.1860 and 7.2056. Upward momentum has improved a tad, and there is room for USD to edge higher today. In view of the mild upward pressure, any advance is unlikely to threaten the major resistance at 7.2450 (there is another resistance at 7.2200). Support is at 7.1910, followed by 7.1805. 

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.