Economists at CreditSuisse continue to look for USD/CNH to trade in a 6.65-7.15 range over the next three months. 

PBoC’s “red line” for USD/CNY is at 7.20

“For USD/CNY, we still think the PBoC’s ‘red line’ is at 7.20.”

“US 10y yields have fallen back below 3.00% since peaking at 3.20% on Monday, May 9, providing some relief to USD/CNH. Still, we expect USD/CNH to continue to rise in coming months as Fed expectations push US yields higher.” 

“We reiterate our view that USD/CNH will rise within a 6.65-7.15 trading range over the next three months.”