The aggressive uptrend in USD/CNY is now seen within touching distance of the key notable high of 2022 at 7.3274. Whilst we think this should be respected and we would be alert to a potential reversal lower from here, should strength directly extend, we would not see the next meaningful technical resistance until 7.47/7.50.

We would note that a higher USD/CNY (weaker CNY) is typically associated with a weaker equity market, reinforcing the existing top we now see in the Shanghai Composite.