USD/CNY Forecast: Why Westpac Sees Sustained Chinese Yuan Gains

Westpac expects continued Chinese yuan strength versus the U.S. dollar, with USD/CNY around 6.78 now and forecasts for it to decline to 6.75 by September, 6.70 by year-end, and 6.30 by end-2028. The bank sees China’s currency outlook improving as domestic consumption recovers, reducing reliance on exports and supporting confidence. It also cites continued investment in advanced manufacturing and technology, plus China’s expanding role in global trade and financial markets, as structural supports for the yuan. The piece is broadly bullish for the yuan and bearish for USD/CNY, signaling a gradual, multi-year FX trend rather than a near-term shock.