CNY review: Western Union

Quotes from Western Union:

- PBoC set Yuan's mid-point fixing to its lowest level since Nov as the Yuan continued to trade precariously close to the top end of its 2% band. Over the weekend China reported a record trade surplus of $60.6 billion for February as imports collapsed 20%, sending commodity prices sharply lower, raising further doubts of the state of the domestic economy in China. 

- The Chinese government is targeting GDP growth of 7% in 2015 as per Premier Li Keqiang's statement in Parliament last week which is much lower than 2014's growth rate of 7.4% & is the lowest since 1990. 

- The Yuan could trade lower in the coming weeks but the pace of depreciation will be measured with China's huge stack of forex reserves coming in handy to manage the outflows of hot money from China. The market expects the PBoC to lower the fixing gradually and we could see levels of 6.20 by the end of the year.