In the view of economists at Scotiabank, the USD/CNH pair is set to trade within a 6.70-6.80 range in the weeks ahead.

China’s economy to revive further in the second half

“We expect China’s economy to revive further in the second half with more fiscal stimulus to be rolled out.” 

“We believe China’s central bank will not flood the economy with excessive liquidity and a weaker yuan that makes imports into China more expensive is not in the monetary authority’s interest at this stage.”

“USD/CNH is expected to trade between 6.70 and 6.80 with downside potential in the weeks ahead.”