USD/CNY continues to hold around the 6.70 level. Economists at Commerzbank expect the pair to stabilize at this zone.

People’s Bank of China pledges continued policy support

“PBoC will ensure sufficient loans to key industries. Overall, the subtle message is one of a continued targeted and measured approach, and ongoing policy support via loans rather than interest rate cuts.”

“On the currency front, the message was once again one of ‘a flexible and market-determined exchange rate’. We see stability as the key objective near term.”