No Yuan devaluation today, China stocks recover

By FXStreet FXStreet (Bali) – Another volatile Asian session, with the Chinese Yuan fix and equity markets driving the FX arena.

No Yuan devaluation today

At the end, a more risk-friendly environment prevailed, following a stable USD/CNY fix, which saw today’s setting at 6.5636 vs 6.5646 last. The fix was against Nomura’s estimates, which they projected to be much higher as 6.5902 from 6.5646.

The decision was perceived, initially, as risk friendly, as the PBOC refrained from devaluing the Yuan another day; this spurred a relief risk rally, which saw the Aussie and Kiwi well bet, equities spiking higher, while the Japanese Yen was sold. AUD/USD traded as high as 0.7080 which was then followed by a consolidation around the 7050 line. USD/JPY saw heavy suppy at 118.60 after the initial PBOC-led buying, only to consolidate just below a technical line at 118.30.

Shanghai seesaws, eventually keeps green

Afterwards, with the Shanghai equity cash open underway, and following a promising open above 2%, it returned back down to trade -2% at one stage, before returning back to positive. Judging by the ferocious 5m candle reversal on that fall, it suggests state-owned institutions may have been on the bid supporting aka ‘intervening’ prices back up. We also …read more

Source:: FX Street