The 20th Party Congress in China opened on Sunday. As the Congress gets underway, USD/CNY trades around the 7.20 mark. Economists at ING expect the pair to race higher towards 7.40.  

China to maintain the current stance on covid

“The speech by Chinese President Xi Jinping at the ongoing 20th Party Congress, which heavily focused on technology to drive growth and potentially opens the door for less restrictive policies in the longer run. But markets found no hints in Xi’s speech that the zero covid policy will change or that the Chinese market will become more attractive in the near future.” 

“USD/CNY will continue to rally into the 7.40 level over the coming months.”