USD/CNY is now trading above 7.34 and that is the highest level for the pair in 15 years. The mounting pressure on the Chinese economy is continuing to weigh on the yuan currency and despite Beijing's best efforts to try and stem the drop, it is tough to fight a tidal wave when it hits this hard.
The PBOC finally relented today and set the yuan fixing rate above 7.20 and that was enough of a trigger for traders to run up the price and breaking the high from November last year.
The question now is where will they draw the line next on the yuan's fall? There's not much precedence here but the 7.40 mark will be the next potential spot to watch perhaps. If anything else, keep a watchful eye on the developments here as it could also lend itself to be an indirect tailwind for the dollar.