According to ANZ analyst Zhaopeng Xing, the USD / CNY ratio reached more than 7 this week, which could well illustrate China's inflation outlook in the second half of 2019.
“A boost of similar magnitude to the PPI can be achieved if USD/CNY stays at 7.1 from now on.”
"However, a similar increase in PPI can occur if the USD / CNY ratio remains at 7.1."
"This morning China released inflation figures from its Consumer Price Index in July, declaring it at 2.8%, while declaring PPI at -0.3%. In our view, the outlook for inflation is still affected by Currency shocks. "