The yuan has been steadily trending higher against the USD since April but the People’s Bank of China’s decision to unexpectedly cut interest rates last week and recent US dollar strength has reversed USDCNY’s trajectory. The pair has now reached its 100-day, a break of which would be a bullish technical indicator. On Friday, the PBoC unexpectedly announced that it was cutting its benchmark rate for the first time since 2012. China’s central bank cut its one-year lending rate by 40 bps to 5.6% and its one-year saving rate to 2.75% from 3.00%. This has taken some momentum out of USDCNY. Part of the attractiveness of ... (full story)