This remains a key spot that isn't warranting enough attention in my view. The yuan continues to slide heavily in the past four weeks and local authorities are showing no signs of putting on the brakes.

The offshore yuan as now weakened past 6.80 against the dollar with the onshore yuan hitting 6.76 against the greenback currently. As things stand, it really depends where China wants to draw the line but based on today's fixing, it doesn't look like they have much appetite just yet to do so.

As mentioned before, when the yuan moves like this, it tends to have spillover effects to risk sentiment and major currencies . On the latter, emerging markets tend to suffer and the dollar typically is able to find an added tailwind - which has been the case in recent weeks already.