The fix today was a little tricky as the PBOC kept USD/CNY just below 6.9000 but as the dollar is continuing to run riot, we are seeing the pair break higher in a push to 6.9400 on the day now.
As mentioned last week, China is looking to pump the brakes on the latest drop in the yuan but it seems more than likely that they will ease USD/CNY towards 7.00 and perhaps draw a hard line there.
But for now, the extended decline in the yuan will continue to pressure risk and emerging markets in general while still providing added support for the dollar in the meantime.
