In the view of economists at TD Securities, the Chinese yuan depreciation path will likely remain in place. They expect the USD/CNY to reach the 6.80 mark by the end of the year.

USD/CNY could test the 50% Fib level around 6.7139 in the near-term

“A likely worsening current account picture, reduced portfolio inflows and likely moderation in direct investment flows, all point to further CNY weakness in the months ahead.”

“We maintain our forecast of USD/CNY 6.80 by end year, with risks towards an even weaker CNY outcome.”

“In the near-term, if USD/CNY sustains a break of the 23.6% Fib resistance level around USD/CNY 6.6028 it could see a test of the 50% Fib level around 6.7139.”