CNY staged the biggest intra-day drop since 2007 to 6.1760, a move which seems to have been driven by the PBoC. It has since retraced to 6.1640, about 0.7% above the fix from a high of 0.9% earlier. USDCNH also squeezed higher but to a lesser extent to 6.1258 and CNYCNH hit a low of 0.994. The USDCNY fix on the other hand was left relatively steady at 6.1214. The CNY drop seems to have caused AUD to weaken to 0.895 but impacts have been contained elsewhere. The KRW remained 0.2% up on the day at 1066, MYR is flat at 3.28, while INR and THB dropped 0.2% and 0.1% respectively.Amongst G10, NZD rallied to a high of 0.841 on the back of a very strong ANZ business survey. EURUSD edged down to 1.370 ahead of today’s inflation release while USDJPY weakened to 101.79.
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