PBOC 1 of only 2 G10 central banks in easing mode. Weak yuan. Not currency rocket science.

Via National Australia Bank, comments on the Chinese yuan:

  • June-to-date changes for major currencies shows the standouts are the
    2.9% rise in USD/JPY and 1.8% gain for USD/CNY , against which every
    other G10 currency is stronger against the USD.
  • Only two major
    central banks are currently in easing mode – the PBoC and BoJ.
  • This
    is not currency rocket science.

LOL. Yes.

NAB further on yuan:

  • Realistically, the … Yuan (will only reverse course) on hard
    evidence of fiscal support for the ailing post-zero covid China
    recovery, currently notable by its absence.

And on the AUD:

  • The AUD, after defying
    the pull from a weaker CNY in the first half of June, has been back
    showing slavish adherence in the last week or, very slightly weaker
    Monday (-0.07%) whereas most other G10 currencies are firmer


This article was written by Eamonn Sheridan at www.forexlive.com. Source