USD/CNY has broken out to new 2023 highs, suggesting further upside is likely, according to economists at Credit Suisse.

Key support seen at 6.9639/9560

“USD/CNY has broken out above a series of important resistance levels starting at 6.9733 and stretching up to 6.9982/7.0082, with an associated pickup in short and medium-term momentum indicators.” 

“With the USD turning stronger and the Chinese recovery from covid lockdowns underwhelming, we see a strong case for further upside, with next resistance seen at 7.0843, then the 78.6% retracement of the 2022/23 fall at 7.1982.” 

“Key support at the 6.9639/9560 breakout zone ideally holds.”