The Yuan has been under pressure amid China’s weak economic outlook. Economists at Commerzbank analyze USD/CNY outlook.
Pressure persists into 2024
CNY will likely remain under pressure before economic data show that China’s growth momentum stabilizes and gains a firmer footing.
We expect the USD/CN pair to continue to stay at around 7.30 in the near term and CNY will remain weak for some time ahead.
Longer out, we expect USD/CNY to fall below 7.00 in the latter part of 2024 due to the expectation of a softer USD as we anticipate the Fed to cut its key interest rate next year.
Source: https://www.fxstreet.com/news/usd-cny-to-fall-below-700-in-the-latter-part-of-2024-commerzbank-202311160722