Today the People’s Bank of China again let the Yuan down the slippery slope to the 7 handle versus USD by re-setting the central reference rate to 6.8131, down from Friday’s 6.7942
This has sent offshore Yuan tumbling as well as the USDCNH pair makes new highs:
Meanwhile the Aussie is doing a barrel of nothing, slowly selling off in afternoon trade as the usual Monday morning gap brings no opportunities:
The daily chart is not that more illustrative but does put the weekly downtrend from the January highs into context:
This sideways shuffle between a potential bottom at the 73 handle and overhead resistance at ca. 74.70 or so has dominated trading in July, with the RBA stuck between the US-China behemoth trade war that seems to be ramping up.
This week will see the Aussie coming under more pressure with building approvals data tomorrow key to domestic pressures, followed by trade numbers on Wednesday.
The downward bias remains intact despite the sideways shuffle.