Analysts at Credit Suisse now expect USD/CNH to trade gradually higher in a wider range of 6.35-6.55 in the next three months. 

Incremental CNH weakness will likely continue

“As the Fed continues to signal rate hikes to offset high US inflation, we expect incremental CNH weakness against the dollar. However, we still do not expect a large, sudden devaluation of the yuan, as this would possibly lead to financial instability and amplify growth concerns.”

“Now that USD/CNH has traded back to 6.40, we expect USD/CNH will trade higher in a wider range of 6.35-6.55 in the next three months.”