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).
To pop my tin hat on for a moment - that's what China would love us to think though.
The argument supporting the PBOC not wanting it fall too far is that it will encourage capital outflow, which the PBOC is trying to keep under control.