Economists at Credit Suisse expect the Chinese Yuan to remain supported and maintain their USD/CNH forecast range of 6.70-7.10.

RRR cut should help

“We think the Yuan will continue to be a haven of relative stability amidst ongoing concerns regarding US and European bank liquidity.”

“We reiterate our USD/CNH forecast range of 6.70-7.10.”

“The directionality in US yields will still drive USD/CNH, but the RRR cut will add to the prior narrative of growth-friendly Chinese policies. That should help stabilize the yuan relative versus other EM and cyclical currencies.”