The pair is trading back to its lowest since 23 May on the day, hovering around 6.64 levels currently.

The strengthening in the yuan comes as China is scaling back on lockdown measures in Shanghai and Beijing, with the former also introducing measures to bolster the local economy:

That is contributing to a slightly more positive risk mood as well, with the dollar drop extending also part and parcel of the decline in USD/CNY since Friday.

The 6.80 threshold appears to be where Chinese authorities are drawing the line and that is being reaffirmed this week. The dollar’s weakness and recent positive local developments have helped to see the yuan battle back a little against the dollar and we are still in the midst of establishing the new “range” in which the currency will settle in.

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