Yuan drops to lowest since Jan 2011

Chinese Yuan (CNY) drop to lowest since Jan 2011, pushing the USD/CNY to 6.6358 levels after the People’s Bank of China (PBOC) weakened Yuan fixing by most since August 2015.

PBOC sets USD/CNY at 6.6375 vs 6.5776, its weakest fix since Aug 2015. USD/CNY has been in the uptrend ever since it bottomed out at 6.04 in early 2014. The rally gathered pace in August after PBOC altered its FX policy. Since then the PBOC has been steadily depreciating Yuan at regular intervals.

USD/CNY Technical Levels

The immediate hurdle is noted at 6.645 (late Dec 2010 high), above which the pair could test 6.6784 (mid Dec 2010 high). On the other hand, a major support is seen at 6.6042 (Jan 21016 high), under which the pair could drop to 6.4509 (Mar 2016 low).