PBOC continues to weaken the Yuan
This is done by weakening it’s ‘fix’ to the US Dollar. Two days in a row, the move is looking more like a trend than a one-time deal. I can imagine PBOC Governor Zhou to ECB President Draghi “大炮是这么发射的”.
USDCNH day 2 of Yuan devaluation
USDCNH hourly chart
However no one does devaluation better than Japanese PM Abe. The Japanese Yen easily lost half of its value against the USD since his election in December 2012 when USDJPY was trading at the 82-83 region. At the moment, USDJPY is doing 125.20. Here’s an old chart published November last year.
USD to CNY rates published on Bank of China
These are published rates for 07, 10, 11 and 12 August. Note: Bank of China is a commercial bank whereas the central bank is the People’s Bank of China.
USDCNY 07 August 2015
USDCNY 10 August 2015
USDCNY 11 August 2015
USDCNY 12 August 2015
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
Soh Tiong Hum is a member and regular speaker at Technical Analysts Society Singapore events and has a bi-monthly lunch time event at IG Singapore on forex and stock markets. He is an avid blogger on technical analysis topics; his Twitter account @sohtionghum
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