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A strong CNY leading up to Chinese New Year

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15 January 2023

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A strong CNY leading up to CNY (Chinese New Year)

Patrick Idquival from Ebury Partners shares his views on the strength of the CNY leading up to CNY (Chinese New Year).

He mentions that the big shift in the Chinese Yuan is due to two things,┬á a correction in the USD on the back of the Fed and the Chinese Reopening story. Last year consumption and spending were a drag on the Chinese economy – expect a reopening boom similar to what we experienced in late 2021.┬áThis combined with what could be a possibly weaker CPI figure tomorrow could drive the USD/CNY price back closer 6.50 and as we know Australia is a big benefactor to a strong Chinese economy. AUD/USD is trying to consolidate above 0.6900 – 0.70 isn’t far off the cards now.

Watch full video here