USD/CNH likely to see upward pressure, sell on rallies towards 6.80: Scotiabank

The USD/CNH currency pair is expected to witness an upward pressure, while being sold on rallies towards 6.80, according to the latest research report from Scotiabank.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a delegation to Beijing for further trade negotiations on February 14-15. White House National Trade Council Director Peter Navarro was not listed as part of the US team.

The two-day meetings will be preceded by deputy-level negotiations that is set to begin on Monday, led by Deputy US Trade Representative Jeffrey Gerrish. Chinese Ministry of Commerce said in a statement on Saturday that Chinese Vice Premier Liu He would join Lighthizer and Mnuchin in the trade talks this week.

Although US President Donald Trump said last Thursday that meeting Chinese President Xi Jinping before the March 1 deadline is "unlikely," CNBC’s Eamon Javers reported on Friday that the China tariff deadline could change via telephone should there be big progress, citing a senior administration official.

"We think the US and China will likely settle for a partial agreement by March 1 and continue negotiations. In this scenario, it would be supportive of moderate risk-taking and the yuan," the report added.

In addition, Fed Chairman Jerome Powell is likely to reiterate his dovish stance when testifying before the Senate and the House respectively on February 26 and 27. China has stepped up crackdown on underground banks on growing fears of capital flight.

Xinhua reported on Saturday that China's underground bankers trading in large amounts of foreign currencies will face criminal charges, citing a recent judicial explanation issued by the Supreme People's Court (SPC) and Supreme People's Procuratorate (SPP).