Citi: Yuan to keep rising…for now

See the latest Australian dollar analysis here:

Macro Afternoon

Via Citi:

Monday saw hawkish messaging from a White House press conference on China relations as outlined here. President Biden emphasized he would not rush towards significant changes in US-China policy. Under Secretary of State Anthony Blinken, we are likely to see a continued state of rivalry in the near-term albeit less volatile relative to the previous administration.

 Our traders note that the CNH appreciation trend is unlikely to end though. Price action also shows that the market has ignored the above comments, with spot marginally lower at 6.4830 at the time of writing despite the USD bid/risk-off elsewhere. This may in part be explained by spot also running into various resistance levels.’

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