FXStreet reports that economists at CIBC Capital Markets anticipate further CNY and CNH gains.

“To the degree that foreign demand for Chinese bonds can take up any slack from moderated credit expansion onshore, then Chinese activity levels can remain strong, and CNH appreciation will then be validated by another factor.” 

“There were some reports of ‘smoothing’ operations around the 6.4000 level, i.e. buying at the direction of monetary authorities in order to slow the market moves. But we note that the yuan sits only mid-table of gainers against the USD YTD, having gained around 2%. Our medium-term measured target for USD/CNH on the break below 6.4000 is 6.2131. We forecast USD/CNH at 6.2000 by end-4Q.”