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.