From Deutsche:
It would perhaps be easiest to conclude that this is business as usual in China FX, and that we can continue to ignore any risks from this source, like we have done for the better part of the last quarter (and arguably since March this year). And yet, there are also reasons to take more notice, because
This will not be the first time China would have used a holiday period to mark a shift in strategy (recall the LNY period earlier this year). The authorities have lowballed the fix on at least three occasions over the past couple of months, when the model had signaled a break of 6.70. With the G-20 out of the way, as also the SDR inclusion, and the IMF meetings over the weekend, the timing of the break cannot be ignored.
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