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During September, the Chinese yuan appreciated from 6.8646 to 6.7898, the fourth consecutive month of gain. China recovery progress and the market’s risk appetite will push-and-pull USD/CNY, which is likely to move within the 6.70-6.90 range in the short-term, according to economists ta MUFG Bank

Key quotes

“Autumn has arrived, and the challenges ahead are heavy, but the most challenging time is over. Currently, some countries are struggling to balance COVID-19 countermeasures and everyday activities. China’s COVID-19 situation and economic environment have been continuously improving since this summer.”

“On the one hand, the market is more optimistic about China’s economic prospects. On the other hand, however, the fog on the RMB’s path has become denser as the global risk-on sentiment cooled off toward the end of September.” 

“Ahead of the presidential election, the first 2020 US presidential debate already stirred up RMB’s volatility. We forecast the USD/CNY is likely to trade between 6.70 and 6.90 in the near-term.”