Goldman Sachs has updated its projections for the USD/CNY exchange rate, maintaining a positive outlook on the Chinese yuan. The bank anticipates the yuan will appreciate to 6.95 in three months, 6.90 in six months, and 6.85 in twelve months. This forecast is based on the belief that the yuan is fundamentally undervalued, with external demand stabilizing and growth expectations improving. The People's Bank of China's consistent daily fixing is expected to support a gradual appreciation of the yuan, potentially reducing foreign exchange volatility across Asia. However, risks such as domestic growth setbacks, unfavorable global yield trends, and trade flow issues could impact this trajectory.