Aussie dollar slammed as Yuan strengthens

The PBOC has strengthened the Yuan again today, setting the reference rate at 6.4585 against the USD, lower than yesterdays 6.4612 and now significantly down from the start of the year:

Coupled with the Chinese PMI’s, both official (posted earlier) and private – the Caixin/Markit version, which posted an unexpected stronger 49.7 point reading, up from 48 points – has sent the Aussie dollar reeling, now down nearly half a cent in midday trade at 76.60:

Theres no threat yet to its recent daily lows, but this data has certainly taken the wind out of the Pacific Peso.

Indeed regional markets are falling too, the Nikkei is down 2%, Hong Kong stocks 0.5% and the ASX200 has almost taken out support, down 1.4% to 5011 points.

Some April’s Fool day..