The USD/CNY continues to face upside pressure according to analysts from Danske Bank. They point out that the difference between interest rates in China and the US clearly favor the US dollar. 

Key Quotes: 

“USD/CNY has taken another leg higher lately on a stronger USD and wider US-China spread.”

“Relative rates clearly in favour of higher USD/CNY. US money market rates now far above Chinese.”

“Stock markets weaker lately on global recession fears, more US restrictions on Chinese tech, continued property crisis and weaker CNY.”

“PMIs dropped back in August, but the credit impulse is still robust. Retail sales surprised to the upside in August but remain weak. Confidence is low. The property sector is still in a deep crisis although stress among developers has eased somewhat lately.”