The dovish bias apparent in the July Fed statement has the offshore yuan closing in on its strongest level of the year at 6.7234, hit amid the epic yuan short squeeze the PBoC engineered in late May/early June:
Anything stronger than that and you’ve got to go all the way back to October.
Speaking of October, the PBoC raised the yuan’s daily reference rate by 0.33%, the most since June 28, to 6.7307, the highest since October 18.
As a reminder, the onshore yuan is sitting at a 9-month high:
Also worth noting:
- China’s June industrial profits rose 19.1% Y/Y, while the January-June number was +22% Y/Y.