PBOC said to be wary of further yuan appreciation

According to MNI sources

Word is that the PBOC does not want a sharp appreciation in the yuan and also that the current rally we're seeing could be capped at about 6.70 against the dollar.

With the dollar weakening to start the year, it's pushing away talks of USD/CNY revisiting the 7.00 handle for the time being and so far a more dovish Fed is allowing for the yuan to appreciate rather strongly against the greenback.

The yuan is up by about 0.7% today against the dollar and is part of the reason why the kiwi and aussie are also faring well on the day.