CNH

The Chinese yuan looks set for its largest gain against the US dollar since March, propelled higher a triple-whammy of factors.

USD/CNH rallies as the PBOC unexpectedly cuts wholesale interest rates. AUD/USD gains on stimulus hopes.

Whilst the yuan has continued to decline against the US dollar, its weakness can be noted against several currencies as China let’s their currency slide.

Whilst the yuan has continued to decline against the US dollar, its weakness can be noted against several currencies as China let’s their currency slide.

Rate hikes are really beginning to take a bite out of the US employment numbers, with job openings falling at their fastest pace since the pandemic.

Rate hikes are really beginning to take a bite out of the US employment numbers, with job openings falling at their fastest pace since the pandemic.

Another day, another big level gives way for global markets. And that has seen the yuan weaken to 7.2 against the US dollar, a level not seen since 2008.

Despite attempts to stabilise the yuan, USD/CNH has reached 7.000 as policies between the Fed and PBOC continue to widen.

Using bitcoin futures we can see that Bitcoin traders aggressively went short just above the year to date low. Now we wait to see if it breaks…

The National Bureau of Statistics of China (NBS) released PMI data for China, and is another data set which underperforms relative to expectations.

Fundamentals point to further weakness for the Chinese economy, and that has been another headwind for the China A50 index. It also builds a case for a weaker yuan.