CNY has been fixed on the weak side against the USD - Westpac

The CNY has been fixed on the weak side against the USD compared with basket move of late, but the fixing turned less aggressive on Thursday compared with Wednesday, points out Frances Cheung, Research Analyst at Westpac.

Key Quotes

“The authorities may just be trying to curb CNY outperformance against regional peers amid a strong dollar. This does not suggest that China deliberately targets a certain level of USD/CNY as a response to the ongoing trade conflicts. Resistances for USD/CNY to be watched are 100DMA at 6.3995 and then the 38.2% retracement (from 2014 low) at 6.4355.”