According to Frances Cheung, Research Analyst at Westpac, USD/CNY is likely to trade in a wide range of 6.91-6.98 given headline risks on trade talks, with the recent high of 6.9771 the next resistance and the 50DMA of 6.9090 the support.
Key Quotes
“Another RRR cut near-term cannot be ruled out, in view of the heavy MLF maturity schedule in the months ahead. The monetary backdrop is likely to support USD/CNY.”
“Limited outflow pressure – net FX sales narrowed in October though there was a small bond outflow – and the authorities’ willingness to contain RMB weakness, on the other hand, is likely to cap USD/CNY below 7.0 for now.”
Share
