We need a better reason to panic than this
Traders are constantly wondering what's going on in China but in the big picture there is no reason to panic at the moment. If anything, a weaker yuan is good for the economy.
Money is sloshing around at the moment but for there to be a sustained slump in markets, there needs to be bad news. I just don't see it at the moment.
It will take a few days before markets settle but over the next few hours, look for a bounce in risk trades. I can see AUD/JPY getting back to 86.30/40 from 85.50.
