USD/CNY: The bias is tilted overwhelmingly to the upside – Commerzbank

USD/CNY opened higher towards the 6.92 level this morning. In the view of economists at Commerzbank, the risks are clearly tilted to the upside.

Adjustment from PBoC to manage CNY's weakness

“PBoC's mid-point fix for USD/CNY was set to the highest level this year at 6.8698. This was below our model's forecast of 6.8820, suggesting some adjustment from PBoC to manage CNY's weakness. The bias is tilted overwhelmingly to the upside however given the latest bout of USD strength.” 

“It is not just CNY weakness but USD strength as seen by the decline in Asian currencies across the board.”