12 Aug 2015
Market chaos on further Yuan devaluation
FXStreet (Bali) - The market has gone into full risk-off mode yet again following another devaluation of the Yuan by the PBOC, setting today's PBOC Yuan reference rate at 6.3306 vs prior close 6.229.
The US Dollar and the Japanese Yen are the main beneficiaries, just as we saw during yesterday's price action, with Asian shares tanking (Nikkei 225 down almost 1%), while the 30-yr US Treasury bonds skyrocket as investors seek shelter amid growing risk-averse swings.
At present, EUR/USD is around 1.1035/40 lower a handful of pips but saw strong demand on the 20+ pips initial dip. GBP/USD is testing 1.5560/65 lows. Meanwhile, the Australian Dollar has been taken down the elevator with some heavy supply coming through, with the rate currently printing 0.7260, now targeting recent lows at 0.7235.
The US Dollar and the Japanese Yen are the main beneficiaries, just as we saw during yesterday's price action, with Asian shares tanking (Nikkei 225 down almost 1%), while the 30-yr US Treasury bonds skyrocket as investors seek shelter amid growing risk-averse swings.
At present, EUR/USD is around 1.1035/40 lower a handful of pips but saw strong demand on the 20+ pips initial dip. GBP/USD is testing 1.5560/65 lows. Meanwhile, the Australian Dollar has been taken down the elevator with some heavy supply coming through, with the rate currently printing 0.7260, now targeting recent lows at 0.7235.