Chinese economic activity has recovered from the lockdown, but the extent of the rebound is capped by weak external demand, economists at ANZ Bank brief. USD/CNY is sitting at 7.0764.
Key quotes
“The PBoC has kept up with broad-based easing, preventing the CNY from rallying despite China being the first country to contain the COVID-19 outbreak and lift restrictions.”
“With China’s exports set to decline and onshore demand for USD likely to stay strong to meet foreign currency debt repayments, we expect USD/CNY to eventually retest the 7.20 level by Q3.”
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