USD/CNY: what's changed? - BTMU

Analysts at Bank of Tokyo Mitsubishi explained that except for a temporary sojourn above their previous topside, stabilization is still the watchword for authorities.

Key Quotes:

"We'd highlighted SDR entry (1 October) in our monthly but more immediately we'd focus on the 4-5 September G20 Summit (which is, after all, in China). The stronger fix is almost dead-on to its level a year ago and 811, as if to say, see, nothing's changed. Actually a lot's changed."

"A simple perusal of a 1-year chart will show, progressively, USD/CNY flirting with 6.60 then stabilizing, then flirting with 6.70 and stabilizing; so it stands to possibility 6.80 may be next. There are a lot of cosmetics applied in Chinese exchange rate policy; foreign friends should seek the underlying reality."