The yuan depreciation is still not finding any firm pushback by Chinese authorities and it appears the 6.60 level also may not be where they actually draw the line.
The offshore yuan has weakened to 6.63 against the dollar, its weakest since November 2020.
As mentioned before, this is a key aspect to watch as it does have spillover impact to sentiment in other major currencies. In particular, it provides a strong tailwind for the dollar as the push continues. But adding to that, I'd argue that is also part of the reason why the aussie and kiwi are struggling quite badly today despite better risk sentiment.
