Offshore yuan has dropped to its lowest (highest for USD/CNH) since mid-May:
The People's Bank of China is about to set the mid rate for USD/CNY for the session. Its expected higher (ie lower CNY),
-
which has led to a lower AUD/USD already this morning. If the setting is not too far from the estimate there is likely to be some 'buy the fact' initial response. A weak yuan is not a positive for Australian exports to China though.
The currency slumped yesterday after the PBOC rate cut and awful data for July. The youth unemployment rate is 19.9%, its highest recorded.
