USD/CNH climbs above 6.50 on broad dollar strength today
The 6.50 "upper limit" has been a key level that Chinese officials are defending over the past few months and the latest episode in late July was quickly dealt with, as the USD/CNH move at the time owed to a rout in local equities.
We are seeing the offshore yuan weaken past the key level again, by the slightest of margins for now, in trading today and it is one to watch out for in case Chinese officials step in to try and prop up the yuan.
While this does have some impact on the dollar's propensity to surge ahead with gains, the broader undertones are still hinting towards a stronger greenback against other major currencies and I don't see that changing much for the time being.
