Economists at Commerzbank expect the USD/CNY to remain confined between 7.10 and 7.20.

The PBoC will continue to defend the Yuan by tweaking the daily fixing

USD/CNY will likely continue to trade largely between the 7.10 and 7.20 range. 

On the one hand, Yuan’s weakness will remain until the recent stimulus takes effect and economic growth picks up (albeit likely at a moderate pace). 

On the other hand, the PBoC will continue to defend the Yuan by tweaking the daily fixing and perhaps will roll out other measures if needed, to smooth out short-term volatility.