Will USD-CNY rise above 7? - Commerzbank

Analysts at Commerzbank explained that USD/CNY spiked to the weakest level since January 2017, reflecting the bearishness towards the economic and currency outlook. 

Key Quotes:

"As such, there is increasing speculation that the PBoC will not be able to defend the 7 hurdle in USD-CNY in the coming months. "

"We do see rising risks that CNY could depreciate further from current levels."

" However, Chinese authorities should think twice before giving up the critical threshold for USD-CNY at 7 too lightly as this could unleash forces that are even more difficult to control. "