To continue to fall below 7.00 – DBS

USD/CNH should extend its decline below 7.00 after last week’s 0.9% drop to 6.9815. The pair was last seen at 6.9952, notes DBS FX analyst Philip Wee.

Additional fiscal measures are expected

“The CSI 300 index rose 15.7% last week, its best weekly performance since November 2008, on China’s biggest monetary stimulus package since the Covid-19 pandemic to support the property sector and prop up property markets. capital.”

“Further fiscal measures are expected as China tries to meet its 5% growth target. An announcement is likely before the meeting of the National People’s Congress in the second half of October.”

“The US Treasury Department welcomed last week’s stimulus measures but stressed the need for stronger domestic demand than reliance on exports.”