China-US inflation difference remains on the negative, below -%1. The downtrend of the spread that started in March is one of the major reasons for USDCNY to go lower. Currently, USDCNY is just below 6.45 which was a key support level. If the price continues to stay below this level, the long term uptrend that started in 2014 can be tested in the coming weeks. But 6.36 will be a powerful support level and may become the turning point for USDCNY.
