And it could yet get worse as the mounting pressure on the Chinese economy is taking a further toll on the yuan currency. It is right on the brink against the dollar with the potential to break out to its weakest levels since January 2008.
USD/CNY daily chart
The trade balance data today here once again highlights increasing pressure on the economy and so far, the measures undertaken by Beijing are not really convincing markets that they are the right solution to turn things around.
The high from November last year comes in at 7.327 for USD/CNY and a break above that will see it contest levels last seen all the way back in January 2008.
Chinese authorities have tried extremely hard to defend the currency as of late but it looks inevitable as the pressure continues to mount on the economy.
Once again, this is another major spot to watch for broader market sentiment and a technical breakout will also provide an indirect tailwind for the dollar itself alongside higher bond yields at the moment.