USD/CNY to trade aorund 7.00 with a mild downside bias – Westpac
|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.
Key quotes
“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.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.