Analysts at MUFG Bank see the USD/CNY pair moving with a neutral bias, in the range 7.0800/7.1500 next week.
Key Quotes:
“Heading into the NPC we are playing a stability card that usually prevails into said Two Meetings. During a pandemic, one would think both US and Chinese Presidents would want to cool it for a while, so as to focus on the most important issue at hand. Problem is we’re not sure for one President the pandemic is the most important issue.”
“April real indications for the Chinese economy will be out. Given the USD export beat, it’s possible VAI will be a tad stronger than consensus +1.5%YoY. But another PPI drop of -2.6% .”
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