USD/CNH: A move above 6.9000 exposes 6.9300 – UOB

Once USD/CNH clears the 6.9000 hurdle it could challenge the 6.9300 level in the near term, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Our view USD to trade in range between 6.8530 and 6.800 was incorrect is it soared to a high of 6.8958 before closing at 6.8920 (+0.49%). While there is room for USD to break above 6.9000 today, the next major resistance level at 6.9300 is unlikely to come under threat. Support is at 6.8850, followed by 6.8750.”

Next 1-3 weeks: “Yesterday (21 Feb, spot at 6.8600), we indicated that ‘upward momentum has waned somewhat but only a break of 6.8480 would indicate that USD is not advancing further to 6.9000’ USD soared to a high of 6.8958 in NY trade and upward momentum is beginning to strengthen again. If USD were to break above 6.9000, the next level to monitor is at 6.9300. On the downside, a breach of 6.8480 (no change in ‘strong support’ level) would indicate that the USD strength that started early this month has ended.”