Here is what a US-China 'currency pact' would mean for the dollar and the yuan
Morgan Stanley (this via Bloomberg) say a pact is likely to weaken the USD and strengthen the Chinese yuan.
- could lead to broad based USD weakness, especially benefitting China-proxy currencies
- yield curves would get steeper
- yen would weaken
MS say it'd be a 'Plaza Accord' lite.
A bit of a summary if its of interest.