Asian corporates have sold a significant quantity of options to enhance returns, which has depressed implied volatility. If USDCNH starts to retrace higher, option sellers will short cover options they have.
doj/DataSet10/EFTA01452333.pdf
{"key_people":["Vinit Sahni","Nav Gupta","Vanshree Verma"],"document_type":"correspondence","key_locations":["London, United Kingdom"],"document_subtype":"memo","key_organizations":["KCP Capital Markets","Deutsche Bank AG","Deutsche Asset & Wealth Management"]}