According to analysts at ANZ, US-China trade tension has returned, which is impacting the CNH, but they note a number of other drivers, which are supportive of CNH. 

Key Quotes

“China-US yield differentials have rebounded on the back of an upturn in inflation and improving economic data in China.”

“Despite near-term volatility stemming from the escalating trade tension, we still look for CNH outperformance in most crosses (EUR/CNH, JPY/CNH, AUD/CNH, NZD/CNH and SGD/CNH) over the longer term. Most central banks have turned dovish, in tandem with the US Federal Reserve. The ECB has restarted TLTRO, and the BoJ revised its forward guidance in April.”