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Weaker PBoC fixing and a 50bps RBNZ cut hits risk appetite again
It is certainly a rocky moment for financial markets. Suddenly it seems as though risk appetite is beholden to the outlook of the People’s Bank of China. Every day the PBoC sets the mid-point for the Dollar/Yuan rate around which the yuan can fluctuate 2%. USD/CNH (offshore yuan) breaching 7.00 was seen as a crucial watershed. The PBoC is yet to set the mid-point above 7.00 but got remarkably close to it today at 6.9996. This was worse than the previous session and seems to have stopped an attempted rally on risk that had been threatening yesterday. Once more the safe havens are strengthening, with gold pushing ever ... (full story)