Westpac analysts point out that USD/CNH and USD/CNY broke the key psychological level of 7 on 5 August, after PBoC “allowed” the USD/CNY fixing to print above 6.90. Key Quotes “These pairs have continued to grind higher and broke 7.10 subsequently amid an escalation of trade tensions between the US and China.” “With the burden of ‘7’ out of the way, the flexibility for the RMB to move based on market forces and fundamentals has increased.” “The economic backdrop – with persistent impact from tariffs on trade flows, which filters through to production and investment – argues for a stable or falling RMB basket. With our expected weakness in the EUR – a heavy weight in the RMB basket, and general weakness in Asian currencies, this outlook for the RMB basket requires some adjustment against the dollar. We expect USD/CNY to grind towards 7.20 by year end, with risk to the upside.” “China appears willing to let the RMB weaken further to reflect fundamentals, as long as that will not trigger substantial capital outflows. In this regard, we continue to monitor various indicators including the monthly FX settlement data to gauge RMB sentiment and flows.” 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 Eurozone: Manufacturing to weaken further as trade war intensifies – ABN AMRO FX Street 4 years Westpac analysts point out that USD/CNH and USD/CNY broke the key psychological level of 7 on 5 August, after PBoC "allowed" the USD/CNY fixing to print above 6.90. Key Quotes "These pairs have continued to grind higher and broke 7.10 subsequently amid an escalation of trade tensions between the US and China." "With the burden of '7' out of the way, the flexibility for the RMB to move based on market forces and fundamentals has increased." "The economic backdrop - with persistent impact from tariffs on trade flows, which filters through to production and investment - argues for a stable… 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.
