FXStreet notes that USD/CNY has been trading in a tight range around 7 in the past week and analysts at Westpac expect the pair to consolidate around this level with a downward bias as flows are supportive of CNY.

“US-China tensions continue to be a risk factor, but only when retaliation comes in the form of trade will there be a material impact on the broader economy.”

“We expect FX flows from the goods account to more than cover the outflows via trade in services deficits, with likely slower recovery in service trade than goods trade. We also expect continued bond inflow as a catch-up in index inclusion-induced flows.” 

“USD/CNY faces resistance at 7.03/74, while the support sits at 6.97/92.”