USD/CNY has settled around 7.20. Economists at TD Securities expect the pair to reach the 7.30 mark by the end of the year.

CNY CFETS to see a gradual weakening

“We don't think China's authorities are attempting to turn the currency around however, given that much of the weakness in CNY is largely due to USD strength).” 

“China's weaker basic balance position (sum of current account, portfolio flows and direct investment will likely result in further pressure on CNY on the months ahead and we continue to expect a gradual weakening of the CNY CFETS trade weighted index, which would suggest relative CNY underperformance vs. its peers.”

“In the near-term, a break of USD/CNY 7.20 is likely imminent and we maintain our forecast for a move to 7.30 by year-end.”