CNY: Returning from the Golden Week holiday with a spring in its step - ING

CNY has returned from the Golden Week holiday on fire as solid Chinese macro data has maintained the current optimism over the economic outlook, according to Viraj Patel, Research Analyst at ING.

Key Quotes

“Comments from PBoC Governor Zhou hinting at a near-term easing of capital and currency controls have also helped fuel investor sentiment. Indeed, ING’s Iris Pang notes ahead of China’s 19th Congress next week that while we don’t expect any exact details on RMB internationalisation reforms by the authorities – if the announced economic growth target is around 6.5%, then this still gives a sturdy fundamental background for CNY appreciation. A wider trading band post-Politburo is likely to support our view that USD/CNY could creep lower towards 6.40 by year-end.”