- The last rate move (down) reflects internal changes in China and external changes
I’ve been harping on this for days, but the looming risk of China having to start selling dollars against the yuan could change to state of play in the major pairing dramatically.
If China liquidates some of its massive reserve stash, it will be against all the currencies in its basket, not just the dollar. They would sell AUD, CAD, GBP, etc…It would be a game changer.
