Economists at Wells Fargo expect the USD/CNY pair to head gradually lower over the coming months.

USD/CNY and USD/CNH to end Q1-2023 at 6.92

“For the time being, we forecast the USD/CNY and USD/CNH exchange rates to end Q1-2023 at 6.92 as broad USD appreciation is still likely, although we forecast only modest Renminbi weakness as the PBoC remains on hold.”

“With the Fed likely to ease monetary policy at a quicker pace than the PBoC over the medium to longer term, the outlook for Renminbi strength over time remains intact, although risks to China's economy and financial markets are abundant as geopolitical tensions with the US have been renewed.”

“We forecast the Chinese currency to reach 6.84 per Dollar by the end of this year and break below 6.80 by mid-2024.”