PBoC expected to set yuan mid-point at 7.1057 per dollar - Reuters estimate

A Reuters estimate has the PBoC expected to set yuan mid-point at 7.1057 per dollar.
The Aussie is a keen focus around the fixing.

Ross J Burland FXStreet

A Reuters estimate has the PBoC expected to set yuan mid-point at 7.1057 per dollar.

FX implications

The fix is of keen interest in the current environment since the decision of Beijing earlier this month to allow the yuan to fall below seven. A devaluing of the currency makes it more expensive to pay back debts denominated in foreign currencies which would be problematic for China considering the size of the nation's debt. This raises suspicion that the PBoC is using the yuans weakness as a weapon in the trade war with the US which in turn weighs on risk appetite as investors flee stocks as the outlook for a deal between the U.S. and China remains dubious - The Aussie is a keen focus around the fixing.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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