Earlier China-related posts today:

Scotia expects further fiscal stimulus will be rolled out in H2 2022 to support the economy. On monetary policy, does not expect the People's Bank of China to "flood the economy with excessive liquidity" .

On the yuan:

  • a weaker yuan that makes imports into China more expensive is not in the monetary authority’s interest at this stage
  • USD/CNH is expected to trade between 6.70 and 6.80 with downside potential in the weeks ahead

CNH update:

usdcnh 18 August 2022 chart