Chinese authorities may simply allow USD/CNY fix to gradually drift higher: Standard Chartered

Quotes from Standard Chartered:

-While an FX market close to equilibrium may seem to create a favourable context for new China FX policy, the benign overall balances disguise very powerful crosscurrents and band widening may be deferred until a more favourable broader backdrop (perhaps when the Fed has launched its gradual tightening phase).

-Short-term,the Chinese authorities may simply allow the USD-CNY fix to gradually drift higher while meeting any new net overseas FX demand with intervention.