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VIEW: Westpac note that "there has.......>

CHINA YUAN
CHINA YUAN: VIEW: Westpac note that "there has been a mild upward pressure on
USD/CNY and USD/CNH in recent sessions amid US-China tensions. We examine the
latest FX settlement and sales data and see no risk of capital outflows for now.
Instead, the likely continued reduction in spending on services including
tourism and education is a supportive factor for the RMB, providing a buffer
against the downside risk to exports. There is a lack of fundamental reason for
a material depreciation in the RMB. Policy-wise, China is unlikely to adjust FX
in response to trade tensions. 7.18 appears to be a strong barrier for USD/CNY."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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