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Against the backdrop of the current market volatility, we fine-tune our USD/CNY forecasts, analysts at Nordea inform. The pair is trading at 7.1040.

Key quotes

“Elevated uncertainty related to the pandemic and global growth will likely lead to ongoing weakening pressure on the CNY.”

“Yield-hungry flows might find Chinese assets attractive on China’s relative growth outperformance compared to the rest of the world and provide a floor for the CNY versus the dollar.”

“The Chinese authorities are not interested in a strong CNY that would put further strain on exports. They are likely ready to intervene, should the CNY face heavy selling pressure.”