USD/CNH is seen maintaining the consolidative mood in the short-term horizon, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We noted yesterday that “momentum indicators are mostly neutral,” and we expected USD to trade sideways between 7.3080 and 7.3310. However, USD traded in a lower range than expected (7.3033/7.3236). There is no clear directional bias, and we continue to expect USD to trade sideways, likely between 7.2980 and 7.3220. \

Next 1-3 weeks: Our update from Tuesday (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.