- USD/CNY: In a tight range 7.10-7.35 for most of next year – TDS
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17 tháng 11 2023
USD/CNY: In a tight range 7.10-7.35 for most of next year – TDS
The Yuan has taken a beating and is one of the underperforming Asia pairs against the USD. Economists at TD Securities analyze USD/CNY outlook.
USD/CNY at 7.35 marks the line in the sand
The PBoC's mantra now on the Yuan is ‘watch the pace, not the level’ but we suspect USD/CNY at 7.35 marks the line in the sand.
Structurally, however, we think long-term fair value for USD/CNY has shifted >7 and we see USD/CNY in a tight range of 7.10-7.35 for most of next year, with authorities likely having a clear preference for a weaker CNY to drive export growth.
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