Chinese yuan continues to press towards 2018 lows despite respite in risk trade
USD/CNH still on the move
The market is feeling better about the trade war but keep an eye on the yuan.
The PBOC has been leaning against weakness but it's getting near a key zone. The mid-point was set at 6.8688 today but USD/CNH has climbed to 6.9308. That's the highest since December 3 (lowest for the yuan).
The headlines will really begin to scream on a break of last year's high of 6.9805 and the psychological 7.00 level. A quick look at the chart shows how critical that zone is: