Morgan Stanley sees USD/CNY lower if China exports stay strong

Morgan Stanley predicts a modest yuan appreciation and a lower USD/CNY if China’s strong export performance continues. The bank forecasts USD/CNY could reach 6.70 in the near term but expects it to reverse to around 6.80 by mid-2027, driven by broader dollar movements. This outlook is supported by China’s strong supply chain competitiveness and revised GDP growth forecasts.

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