Comments from MOFCOM's Shen:
- Suggest enterprises hedge FX risks
- Says yuan rate flexibility to benefit economy in long term
- Suggests financial institutions develop tools to hedge FX risk
- Says yuan rate change has benefits for yuan internationalization
- Yuan rate adjustment to boost market confidence in yuan
Seems to me these comments are a heads up to watch for further yuan devaluation.
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AUD taking a bit of a tumble
A few minutes ago we got the Commerce Ministry also warning that further falls in exports cannot be ruled out.
China stock markets under selling pressure again today also.
The negative connotations for China growth weighing on the AUD, enough to target a few of the close sell stops
