The dollar continues to cement its position as the favoured currency at the moment and the momentum is also helped by the fact that Chinese authorities are still not quite drawing a line on the yuan's recent weakness.

The offshore currency has now weakened past 6.70 against the dollar, that's the softest it has been in 18 months.

The 200-week moving average (blue line) holds close but the technicals don't really matter all too much as it all comes down to where and when Beijing wants the currency to settle down. For now, there's still not much pushback to the recent market moves.

And with 10-year Treasury yields breaking above 3%, that is likely to lend a further tailwind to the dollar as a whole.

The onshore yuan is at least still keeping below 6.70, so we'll see if local authorities will decide that is where they want to keep the currency at. Otherwise, I'm not sure if one can really rule out the yuan weakening towards 7.00 at this point.