AUD lower on expectations of a weak CNY mid-rate

Offshore yuan has dropped to its lowest (highest for USD/CNH) since mid-May:

The People's Bank of China is about to set the mid rate for USD/CNY for the session. Its expected higher (ie lower CNY),

• The People's Bank of China is expected to set the USD/CNY reference rate at 6.7763 today

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which has led to a lower AUD/USD already this morning. If the setting is not too far from the estimate there is likely to be some 'buy the fact' initial response. A weak yuan is not a positive for Australian exports to China though.

The currency slumped yesterday after the PBOC rate cut and awful data for July. The youth unemployment rate is 19.9%, its highest recorded.

• ForexLive Asia-Pacific FX news wrap: China – PBOC rate cut & terrible economic data