The next G-20 Summit Conference is approaching on Sept 4-5 in China, which is interesting if only because the Chinese Yuan has weakened precipitously vs the USD in the past week or so.
On Aug 22, USD/Yuan was “trading” at 6.59, but today it is trading at 6.68, which is just a few ticks from its July 13 multi-year USD high (Yuan low) at 6.71.
Is China sending the Federal Reserve a signal — that if it raises rates, Chinese Central Bank will not allow the Yuan to be dragged up by the USD (and instead will manipulate its currency lower to help the Chinese economy)? And if so, does anyone care?
Ahead of the Sept 4-5 G-20 Summit, should “we” be concerned about the weakness of the Chinese YUAN (strength of USD vs Yuan)?
From a technical perspective, USD/Yuan looks like it just started a new upleg that points to 6.80 next, a 3.3% advance that will press Yuan to levels last seen in June 2010.
Originally published at MPTrader.com.