Goldman Sachs has rolled forward its USD/CNY forecasts but kept its underlying view unchanged: the Chinese currency should gradually strengthen over the coming year.

The bank now projects USD/CNY at 6.95 in three months, 6.90 in six months and 6.85 in twelve months, arguing that the renminbi remains undervalued and supported by improving macro fundamentals.

Goldman says that while China’s domestic recovery is still uneven, its external picture has started to firm, with export momentum stabilising and growth expectations turning slightly more constructive. They also highlight the People’s Bank of China’s steady hand, guiding the fixing lower in a controlled, forward-consistent manner, as evidence that policymakers are comfortable with a slow, managed appreciation path.

The bank adds that the fixing’s “gradual descent,” combined with better macro indicators, supports extending their appreciation call further into 2026, reinforcing the view that the CNY is likely to grind stronger rather than deliver sharp moves.

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Goldman’s call supports a modestly stronger CNY profile, implying limited upside for USD/CNY and signalling steadier policy anchoring from the PBoC — a potential stabiliser for broader Asia FX.