The yuan is trading below 6.40 against the dollar
That applies to both the offshore and onshore yuan now, with the latter also breaking to its highest levels since 2018 as it trades past 6.40 against the dollar now.
As mentioned yesterday, the thing to note here as well is that Chinese officials and media are not really offering much pushback to the latest strengthening in the currency so that may pave the way for further gains in the bigger picture.
For this week, keep an eye on the PBOC fix in the coming days. If the Chinese central bank is comfortable with a push below 6.40, that's the first green light.
And in turn, this could translate to some selling in the dollar as well.
