The Global Times, admittedly a fairly strident sort of source ….

But the concerns they express on the impact of a rapidly falling yuan are those we've been aware of and highlighting since the trade war took a turn for the worse in the recent week or so.

The piece is titled: Defending exchange rate China's top priority
Begins with some background (do note this is from China's perspective):
  • US-China trade talks haven't broken down
  • negotiations appear to have ground to a halt 
  • there remain three core concerns of China that must be addressed. The first is to remove all the additional tariffs, which must be totally revoked if the two sides are to reach a deal. The second is that the amount of purchases should be realistic. The two sides reached consensus on the volume in Argentina and should not change it spontaneously. The third is to improve the balance of the wording of the text. Every country has its dignity, and the text must be balanced.

And goes on (bolding mine … to add to the stridency :-D ):
  • The biggest challenge facing China in the future comes from the exchange rate problem, and it is necessary to be prepared for the upcoming war defending the yuan exchange rate
  • It can even be said that no other problems are important compared with the exchange rate issue.
  • The most worrying issue is the yuan exchange rate. Once the yuan continues its depreciation against the dollar, it will trigger a series of chain reactions. Currency depreciation leads to asset price drops, which prompts capital flight overseas. Intensified capital flight will continue to weaken the yuan, which inevitably dents China's foreign reserves. If such a vicious cycle takes shape, it will have a broad impact on China's financial market, asset market and real economy.
Full article is here from the weekend

Offshore yuan:

offshore yuan cnh chart china trade war

ForexLive

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Sun 19 May 2019 20:24:05 GMT

Weekend - ECB's Knot says euro zone inflation not where ECB wants it

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Sun 19 May 2019 20:24:05 GMT
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Sun 19 May 2019 19:51:12 GMT

Riksbank dep gov says can meet inflation target also with a stronger SEK

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Sun 19 May 2019 19:51:12 GMT
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The Riksbank is Sweden's central bank. Deputy Governor Skingsley speaking on Swedish national public television, SVT - can meet inflation target also with a stronger SEK ---

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Fri 17 May 2019 17:33:01 GMT

Feds Harker does not speak on economy or Fed policy

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Fri 17 May 2019 17:33:01 GMT
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Fri 17 May 2019 17:13:45 GMT

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Bank of Canada Poloz: Jobs market shows a truer picture of Canadian economy

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BOC Poloz speaking: Poloz speaks with BNN Bloomberg The USDCAD has moved lower and below the 100 and 200 hour MAs at 1.3459 and trades to a new session low at 1.34395.

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Fri 17 May 2019 15:47:47 GMT

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Fri 17 May 2019 13:02:02 GMT

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Italy's Salvini: Will wait ofr outcome of EU elections before deciding Draghi successor

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Fri 17 May 2019 13:02:02 GMT
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Fri 17 May 2019 12:33:15 GMT

PBOC to keep balanced and prudent monetary policy

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Fri 17 May 2019 04:30:46 GMT

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BOJ's Kuroda: Government and central bank must closely communicate on policy

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Fri 17 May 2019 04:30:46 GMT
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Further comments by BOJ governor, Haruhiko Kuroda - Doesn't think MMT is appropriate to be applied in Japan - Says unlimited debt monetisation by a central bank will lead to hyper-inflation He also notes that when the BOJ communicates that low rates will be kept for an 'extended period of time', he means that they are thinking of 'quite a long time'.

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Fri 17 May 2019 04:24:49 GMT

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Fri 17 May 2019 04:24:49 GMT
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Fri 17 May 2019 03:55:39 GMT

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Bank of Japan Governor Kuroda: Must maintain low rates for long period

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Fri 17 May 2019 03:55:39 GMT
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BOJ Gov with a flurry of remarks  - Must maintain low rates for long period to meet price target - many central banks facing challenge of achieving price targets with less scope for policy response

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Fri 17 May 2019 02:35:48 GMT

China onshore weakens again today. USD/CNY above 6.9

7 is thought to be a bit of a line in the sand. Not there quite yet but not far away at the pace CNY is losing ground: The PBOC has been allowing the yuan to fall. The view is the currency is not being 'weaponised' (i.e falling to make Chinese goods cheaper in the face of increasing tariffs). 

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https://az705044.vo.msecnd.net/20190517/usdcny-cgart-17-may-2019.png Eamonn Sheridan
Fri 17 May 2019 02:35:48 GMT
Category: Central Banks
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7 is thought to be a bit of a line in the sand. Not there quite yet but not far away at the pace CNY is losing ground: The PBOC has been allowing the yuan to fall. The view is the currency is not being 'weaponised' (i.e falling to make Chinese goods cheaper in the face of increasing tariffs). 

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Fri 17 May 2019 02:05:43 GMT

Poll shows most analysts expect the next BOJ rate move to be a hike

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Eamonn Sheridan
Fri 17 May 2019 02:05:43 GMT
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Fri 17 May 2019 01:48:59 GMT

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JP Morgan on the AUD, the Australian election, and the RBA

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Eamonn Sheridan
Fri 17 May 2019 01:48:59 GMT
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JPM ahead of this weekend's election in Australia: (Note, Labor is in opposition now and are ahead in the polls, but it is close) On the RBA, JPM are tipping August and November rate cuts from the Bank. But acknowledge the risks of a nearer term move have risen following yesterday's employment data. Even say the RBA has enough data to justify a cut on June 4. 

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Fri 17 May 2019 01:19:04 GMT

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PBOC sets USD/ CNY reference rate for today at 6.8859 (vs. yesterday at 6.8688)

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People's Bank of China onshore yuan reference rate, a little weaker for the CNY again today. ForexLive

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Fri 17 May 2019 00:52:49 GMT

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National Australia Bank now expect earlier rate cuts from the RBA. June then August.

NAB had been forecasting Reserve Bank of Australia rate cuts in July and November   Citing: - jobs data yesterday evidence economy weaker than the RBA had expected

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National Australia Bank now expect earlier rate cuts from the RBA. June then August.


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Fri 17 May 2019 00:52:49 GMT
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NAB had been forecasting Reserve Bank of Australia rate cuts in July and November   Citing: - jobs data yesterday evidence economy weaker than the RBA had expected

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Thu 16 May 2019 22:04:10 GMT

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Deutsche Bank on the EUR/USD - see it potentially even lower

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Via an overnight note with some currency outlooks, this snippet on the euro ahead. DB begin by noting that two assumptions they had in January have not played out

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Thu 16 May 2019 21:23:45 GMT

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Morgan Stanley on the RBA … June is too soon for a rate cut from the Bank

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Thu 16 May 2019 21:23:45 GMT
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MS commentary on the Reserve Bank of Australia and the employment report yesterday. April labour market report has been strong enough to prevent the RBA from cutting rates before August

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Thu 16 May 2019 21:20:13 GMT

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Before the next RBA meeting here are two events to watch for clues

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Eamonn Sheridan
Thu 16 May 2019 21:20:13 GMT
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What is it with Tuesdays and the Reserve Bank of Australia?  The next monetary policy meeting is June 4 (you get one guess what day of the week). Ahead of that, two events on the same day … Tuesday (of course) May 21.

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Thu 16 May 2019 21:11:52 GMT

1

ICYMI - Long-time RBA watcher McCrann says the Bank will cut on June 4.

Terry McCrann in the local press here in Australia. . Greg had the info up as it hit:  So this is an ICYMI for AUD traders. Responses to the job market yesterday have been mixed, as befitting the mixed nature of the various data points within the report. 

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ICYMI - Long-time RBA watcher McCrann says the Bank will cut on June 4.


Eamonn Sheridan
Thu 16 May 2019 21:11:52 GMT
Category: Central Banks
1
Terry McCrann in the local press here in Australia. . Greg had the info up as it hit:  So this is an ICYMI for AUD traders. Responses to the job market yesterday have been mixed, as befitting the mixed nature of the various data points within the report. 

Asset 24 View More
Thu 16 May 2019 18:02:00 GMT

Bank of Mexico leaves overnight rate unchanged at 8.25%, as expected

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Bank of Mexico leaves overnight rate unchanged at 8.25%, as expected


Adam Button
Thu 16 May 2019 18:02:00 GMT
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Thu 16 May 2019 17:51:47 GMT

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ECB's Coeure: Current low inflation is puzzling

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Thu 16 May 2019 17:51:47 GMT
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Thu 16 May 2019 17:49:13 GMT

Fed's Brainard: Higher inflation target would have benefits but also risks

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Fed's Brainard: Higher inflation target would have benefits but also risks


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Thu 16 May 2019 17:49:13 GMT
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More from Brainard: Spoiler: The Fed isn't going to change its framework. ForexLive

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