No changes to the consolidative mood around USD/CNH for the time being, argue Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We expected USD to edge lower to 7.1500 last Friday. Our expectations did not materialise as USD dropped to 7.1550 and then rebounded. The current price movements are likely part of a consolidation. Today, we expect USD to trade in a range of 7.1660/7.2020. 

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.