USD/CNY rises above the January 2017 highs

Next stop 7.00?

The yuan is under pressure today, pushing USD/CNY to the highest levels since 2008. It's very close but USD/CNY appears to have broken above 6.9649 and the January 2017 high.

Bloomberg data is showing it above but Reuters says it hasn't traded above. In either case, it's very close and the commodity currencies are slumping.

AUD/USD is now down 44 pips to 0.7036, a fresh low since 2016 while USD/CAD has risen above 1.3100.

In the big picture these are tiny moves in the yuan but the market is laser focused on these levels and a tick above 7.00 is seen as something that could destabilize broader markets. The only thing the market hates more than lower bond prices is lower yuan prices.

If Trump sees a headline about the yuan hitting a 10-year low, it's also going to destabilize him.