Well, it’s not like it had helped that much but the yuan did bounce back towards the closing stages of onshore trading today. That is helping with the mood in the aussie and kiwi a little with the former paring losses on the day against the dollar now.
Unless something changes from a fundamental perspective, Chinese authorities will have to do more in order to keep the pressure off the domestic currency. For now, it could help to stem the bleeding but where’s the fiscal aid? How are things supposed to turn around for the economy? How long can they keep burying all the issues and keep propping up the yuan and local stocks?