USD/CNY to stay in the 7.10-7.35 range for the rest of the year and end at 7.20 – TDS

Market news

21 September 2023

USD/CNY to stay in the 7.10-7.35 range for the rest of the year and end at 7.20 – TDS

The Yuan has taken a beating, slumping by >5% YTD in spot for both onshore and offshore, and is visibly one of the worst performing currencies in Asia against the USD. Economists at TD Securities analyze USD/CNY outlook.

A rangey USD/CNY in Q4

We expect USD/CNY to stay in a 7.10-7.35 range for the rest of the year, primarily because the USD is likely to enter a period of choppiness ahead.

Data surprises have now turned in favour of China vs. the US, undermining the ‘bad China news is good news for the USD’ narrative while USD exhaustion may have occurred. However, we reckon the PBoC may look for some trade-weighted CNY weakness in the near-term to support exports, which should pin USD/CNY at 7.20 by year-end despite our bearish USD view.

USD/MXN: Key features of the Mexican Peso’s outlook over the coming quarters – SocGen

BoJ Preview: The likelihood of renewed currency market intervention is likely to increase – Commerzbank

Market Focus

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer

Open Demo Account & Personal Page

Personal area

support@teletradepartners.com

Risk Warning: Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors ready to take risks to make high profits, but it carries a potentially high level of risk of loss. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation.