Chinese Yuan is increasingly tracking The Dollar. Thus, economists at TD Securities expect USD/CNY to remain elevated in the near term before falling toward 6.55 by year-end.

CNY will largely track the USD in the short term

“While markets may now be a little warier of pushing the CNY lower, we think the CNY will largely track the USD in the short term, with the next resistance at 7.0865 (76.4% Fib).”

“Further out, our view of USD weakness in the months ahead will keep USD/CNY on track to hit our forecast of 6.55 by the end of 2023.”