According to three persons with firsthand knowledge of the situation. China state banks, were observed selling US dollars to acquire Yuan. In both onshore and offshore spot markets early on Tuesday morning in Asia, according to Reuters.
In order to explain the most recent decline in the USDCNH price. The report article made reference of Chinese authorities’ willingness to implement additional stimulus measures. And the People’s Bank of China’s (PBoC) vigorous defense of the onshore Yuan (CNY), via daily fix.
Market response on China state banks
The news strengthens the risk-on sentiment in the market and pushes the risk-barometer, the AUDUSD, to a new intraday high around 0.6765 while pushing the USDCNH to a two-week low, down 0.45% on the day near 7.1500 at press time.
https://voiceoftraders.com/analysis/usdjpy-extends-its-downtrend-to-approximately-141-00
