USD/CNH: Likely to consolidate around current levels - Westpac

USD/CNH is likely to consolidate around current levels during the long holidays in China, barring any huge price action in the USD, suggests Frances Cheung, Research Analyst at Westpac.

Key Quotes

“Impact from the removal of FX risk reserve on forward positions appears to have been already reflected in the upward move in USD/CNY and USD/CNH since 7 September, if the trend in improving net balances of forex settlement and sales (by banks and by banks on behalf of clients) continues. Watch out for the September data.”