The usual commentary from China's central bank
- To strike balance between monetary easing and tightening
- To further boost financial opening up
- To keep liquidity conditions reasonably sufficient
- To adopt countercyclical adjustment when appropriate
With the Fed having shifted to a more dovish stance and US-China trade talks look to be getting back on track, the yuan has found some stability over the past two weeks with USD/CNY falling back under 6.90 and the threat of breaching the 7.00 level has calmed down - well for now at least. Let's see what will come about from the Trump-Xi meeting over the weekend.
