Sources: China said to study CNY devaluation as a tool in trade spat – Bloomberg

Dhwani Mehta FXStreet

Bloomberg quoted people familiar with the matter, as saying that China is said to study the impact of gradual Yuan devaluation to counter the US-China trade spat.

Key Headlines:

China is evaluating the potential impact of a gradual CNY depreciation.

Senior Chinese officials are studying a two-pronged analysis of the Yuan.

The first part looks at the effect of using the currency as a negotiation tool with the US.

The second part looks at what would happen if China depreciates the Yuan to offset any trade impact.

The AUD/USD pair dropped back towards the 0.7670 region on the above headlines.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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