“Will maintain the exchange rate of the yuan at ‘basically stable’ levels,” said People’s Bank of China (PBOC) Vice Governor Liu Guoqiang during the weekend.
The policymaker added, “Trend of the exchange rate will be decided by supply and demand along with changes in international financial markets.”
FX reaction…
Although the news should assure fewer downside risks to the Antipodeans, AUD/USD and NZD/USD remain depressed at the week’s start amid reflation fears and chatters over the need for central bank actions. That said, USD/CNH awaits China open after rising during the last two days, recently around 6.44, as tapering concerns put a bid under the US dollar of late.
Read: NZD/USD remains pressured below 0.7200 ahead of NZ Retail Sales
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