USD/CNH is still likely to trade between 7.2800 and 7.3600 in the next few weeks, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We highlighted yesterday that USD “could continue to advance, but it is highly unlikely to reach the major resistance at 7.3600.” We also highlighted that “there is another resistance at 7.3400.” Our expectations did not materialise as USD traded sideways between 7.3129 and 7.3315. The price action appears to be part of a consolidation, and further sideways trading will not be surprising, likely in a range of 7.3100/7.3300. 

Next 1-3 weeks: Our update from yesterday (03 Sep, spot at 7.3215) still stands. As highlighted, USD is likely to trade in a range for now, probably between 7.2800 and 7.3600