Outlook is mixed -halong; The US Dollar (USD) is likely to trade on a 7.1900/7.2300 range against Chinese Yuan (CNH). In longer running, the USD may be covered by trade for a few days before its decline; The level to watch is at 7.1700, the analysts of the UOB group Quek Ser Leang and Peter Chia Remember.
USD may be covered by trade within a few days
24 hours view: “The USD fell on a low 7.1846 on Monday and then bouncing. Yesterday, we said 'rebound amidst the apparent positive diversity suggests that there is a room for the USD to rise to 7.2400.' The USD subsequently rose but only reached 7.2351, which retreated strongly from the high.
Looking at 1-3 weeks: “We continue to hold the same view as yesterday (06 May, spot at 7.2150). As highlighted, 'although a further decline remains possible, deeply excessive short-term conditions suggest that the USD may be covered by the trade for a few days before its decline is resumed.' The level to watch is at 7.1700.
