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18 Mar 2014
Flash: USD/CNY year-end target at 6.08 - ANZ
FXStreet (Barcelona) - Khoon Goh, Senior FX Strategist at ANZ, said the bank has revised its USD/CNY year-end target to 6.08 from 5.98.
Key Quotes
"We are revising our year-end USD/CNY forecast to 6.08 (from 5.98)."
"We see risks of further near-term RMB weakness, but do not expect this to extend beyond Q2."
"It is not in PBoC’s interests to have a sustained depreciation in the currency, as this will increase financial stability risks."
"Monetary easing currently underway will help support economic activity in H2 2014, which along with a resumption of trade surpluses will see a return of modest appreciation."
"However, the appreciation over H2 will not be sufficient to offset the H1 decline, leading to a calendar year depreciation for the first time since coming off the peg in 2005."
Key Quotes
"We are revising our year-end USD/CNY forecast to 6.08 (from 5.98)."
"We see risks of further near-term RMB weakness, but do not expect this to extend beyond Q2."
"It is not in PBoC’s interests to have a sustained depreciation in the currency, as this will increase financial stability risks."
"Monetary easing currently underway will help support economic activity in H2 2014, which along with a resumption of trade surpluses will see a return of modest appreciation."
"However, the appreciation over H2 will not be sufficient to offset the H1 decline, leading to a calendar year depreciation for the first time since coming off the peg in 2005."