PBOC Fixes Yuan Reference Rate At 6.2298 (prev 6.1162)
PBOC Weaken Yuan Reference Rate By Most On Record
New Zealand FinMin English: Nz Economy Growing Around 2.0-2.5% Rate — BBG
New Zealand FinMin English: NZ Economy Can Keep Growing At Moderate Rate — BBG
The People’s Bank of China devalued the Yuan 2 % overnight, which sparked USD demand and put the Australian and New Zealand Dollar under heavy pressure. AUD/USD fell 1.10 % on the day, while NZD/USD declined 0.95 %. AUD/USD broke below the 0.7320 level, but found some support ahead of 0.73. Should it fall below that level as well, next support is the recent swing low at 0.7230. NZD/USD fell to 0.6536 and the key level to watch is now the 0.6490-0.65 area. It held twice so far, but a clear break below could significantly accelerate downside momentum, as there is little support then until 0.62.