USD/CNH: Any advance is likely part of a higher range of 7.1720/7.1920 – UOB Group

US Dollar (USD) may edge higher against Chinese Yuan (CNH), but any advance is likely part of a higher range of 7.1720/7.1920. In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is expected to trade in a range

24-HOUR VIEW: "We expected USD to 'trade sideways between 7.1630 and 7.1780' yesterday. Instead of trading sideways, USD rose to a high of 7.1871 before closing at 7.1825 (+0.14%). Despite advancing, USD has not gained much momentum. Today, USD may edge higher, but any advance is likely part of a higher range of 7.1720/7.1920."

1-3 WEEKS VIEW: In our update from two days ago (14 Jul, spot at 7.1730), we highlighted that USD 'is expected to trade in a range between 7.1550 and 7.1920.' Yesterday, USD rose to a high of 7.1871. There has been a slight increase in upward momentum, but not enough to indicate a sustained advance. For the time being, we continue to expect USD to trade in a range."