China: More downside for RMB – ANZ

Research Team at ANZ, suggests that despite a retracement in May, they continue to expect the PBoC to guide the RMB index lower in the coming months.

Key Quotes

“The credit-driven rebound of the economy in March appears to have lost momentum as the government looks to curb loan expansion.

Against the USD, with the June FOMC now a live meeting, we see further upside in USD/CNY, which we expect to end this year at 6.65.”