The signs are sure pointing to that
On Friday last week, the PBOC fixed the USD/CNY rate at 6.8996 before setting it above the 6.9000 threshold on Monday this week - which saw the yuan weaken beyond the 7.0000 per dollar level and caused a ruckus in markets.
The Chinese central bank refrained from a USD/CNY fixing above 7.0000 yesterday but are certainly hinting at one with today's fixing of 6.9996.
Considering the milder reaction today, I reckon markets are starting to get used to the new norm and are adjusting accordingly. The yuan is weaker again today after a recovery yesterday but we aren't likely to see sharp downside moves in the currency.
As mentioned here yesterday, China can't afford to allow their currency to depreciate too much, too quickly so as to risk capital outflows - especially when their economy is in a "fragile" state relative to the past few decades.
But as long as the trade war persists (potentially escalating), expect the yuan to remain slightly weaker but not without Chinese authorities stepping in from time to time to intervene and remind markets that they will not allow the currency to depreciate rapidly.
