USD/CNH is still trading in a range – UOB Group

US Dollar (USD) is likely to consolidate; firmer underlying tone suggests a higher range of 7.1820/7.1980. In the longer run, USD is still trading in a range; a narrower range of 7.1700/7.2100 is likely enough to contain the price movements, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Underlying tone suggests a higher range of 7.1820/7.1980

24-HOUR VIEW: "Last Friday, we expected USD to 'consolidate in a range of 7.1720/7.1900.' USD subsequently traded between 7.1790/7.1913, before closing at 7.1885 (+0.12%). The price action still appears to be part of a consolidation phase. That said, the firmer underlying tone suggests USD is likely to trade in a higher range of 7.1820/7.1980 today."

1-3 WEEKS VIEW: "In our most recent narrative from last Monday (04 Aug, spot at 7.1900), we highlighted that USD 'appears to have moved into a 7.1600/7.2240 range trading phase.' Since then, USD traded in a relatively quiet manner, and while we continue to expect range trading, a narrower range of 7.1700/7.2100 is likely enough to contain the price movements for now."