Ella 
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We expect USD/CNH to trade within the 7.2920/7.3300 range yesterday. We did not expect such volatility as USD/CNH rose to 7.3360 before plummeting to 7.2780 before closing at 7.2893 (-0.24%). The rapid decline from highs seems overdone and USD/CNH is unlikely to weaken further. USD/CNH is more likely to trade sideways between 7.2700/7.3200 today.
Next 1-3 weeks outlook: Our view from yesterday (21 Aug, when the price was at 7.3100) remains valid. As we highlighted, USD/CNH is likely to consolidate for a few days before breaking above last week’s high of 7.3490. However, if USD/CNH breaks below 7.2500 (“strong support level”), it will suggest that USD/CNH will not move higher.
