Citibank: Potential for further decline in USD/CNY

Citibank analysts are seeing further potential for declines in USD/CNH.

Key Quotes

“As (1) stability of RMB and stronger capital inflows are now likely part of US-China trade agreement; (2) Corporates are more inclined to sell USD rather than buy at recent lows while anecdotal evidence also suggests corporates also tend to hold off their USD purchases given recent strong downside USD/CNY momentum; (3) Combined bond and equities inflow to rise on confirmation from Bloomberg-Barclays Global Aggregate indexes to start including China from April.”