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.
![](http://az705044.vo.msecnd.net/20181026/2018-10-25_23-17-39.png)
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.