USD/CNH: Further retracement seen below 6.3000 – UOB

UOB Group’s FX Strategists expect USD/CNH to accelerate losses on a breach of the 6.3000 level in the next weeks.

Key Quotes

24-hour view: “Our expectations for USD to ‘dip below 6.3050’ did not materialize as it dipped to 6.3070 before rebounding (high has been 6.3210). Momentum indicators are mostly neutral and USD is likely to trade sideways between 6.3150 and 6.3250.”

Next 1-3 weeks: “There is not much to add to our update from yesterday (01 Mar, spot at 6.3100). As highlighted, the underlying tone has softened but USD has to close below 6.3000 before a sustained decline is likely. The chance for USD to close below 6.3000 is not high for now but it would remain intact as long as USD does not move above 6.3450 within these few days.”