According to analysts at ANZ, the Chinese Yuan and other Asian currencies are being hit by the worsening trade tensions between the US and China, and the bank suggests that the gap between the USD and CNY is due to close, but only if trade tensions are relaxed. Key quotes “The escalation of trade tensions between the US and China have been behind the more recent weakening in Asian currencies. Our models suggest that the Malaysian Ringgit is the most under-valued currency based on an average of the PPP (Purchasing Power Parity) and BEER (Behavioural Equilibrium Exchange Rate) bases “¦ Following the recent sell-off, the Chinese yuan is the next most under-valued currency in the region, with average fair value at around 6.00. In aggregate, the misalignment for USD/Asia as a whole is close to a level that has tended to signal that a turnaround may be around the corner. Hence, even if trade tensions show no sign of easing anytime soon, the extent of further Asian currency weakness may be limited from here. (The USD/CNY sees) average fair value at around 6.00. However, with trade tensions hanging over the currency, the valuation gap is unlikely to close anytime soon. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next RBA Meeting Minutes: next rate move likely up if economy hits expectations FX Street 5 years According to analysts at ANZ, the Chinese Yuan and other Asian currencies are being hit by the worsening trade tensions between the US and China, and the bank suggests that the gap between the USD and CNY is due to close, but only if trade tensions are relaxed. Key quotes "The escalation of trade tensions between the US and China have been behind the more recent weakening in Asian currencies. Our models suggest that the Malaysian Ringgit is the most under-valued currency based on an average of the PPP (Purchasing Power Parity) and BEER (Behavioural Equilibrium Exchange Rate) bases "¦… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
