The PBOC fixing yesterday came in at 6.9377 vs Friday at 6.9510
Friday's fixing was the highest in 10 years.
A move higher in the USDCNY could have the Trump administration accusing China of you manipulation of the currency.
Bloomberg reported that China may impose tax cuts on autos to prop up that industry which has taken a hit as a result of the trade war. The idea is they would cut taxes from 10% to 5% for cars with a particular engine size.
The China auto market is seeing the first slowdown in more than two decades according to Bloomberg.
