It looks like China wanted to show the market that being flexible is a two-way street, the yuan can go up and it can go down. The fixing yesterday was at a new record high for the Yuan against the USD below 6.80 and the markets natural assumption was that there was more to come. Not quite; Chinese banks bought the USD/CNY in significant amounts driving it back above 6.8100.

Nevertheless, it is a start, and we can expect to see the USD/CNY gradually fall in coming months.