Chinese Yuan Fell To 6-Month Low Versus US Dollar

Forex News

The Chinese yuan fell to a new six-month low after the People's Bank of China (PBOC) lowered the average point for the yuan to its weakest value since December 18. The USD/CNH pair reached high of 6.61640. Yesterday, the yuan fell amid expectations that Beijing would further weaken the currency in order to mitigate the impact of trade tariffs imposed by the United States.

The New Zealand dollar fell after the publication of data on the index of business optimism in New Zealand from ANZ. The index of business optimism in New Zealand, published by the ANZ bank, fell to -39 in June from -21.2 in May. The results of the survey of New Zealand companies this month show that the economy continues to lose momentum. The estimation of companies' own activity decreased to +9 in June from +14 in May.

Markets expect rate announcement of the Reserve Bank of New Zealand (RBNZ). The Reserve Bank will most likely keep the Official Cash Rate (OCR) on hold at 1.75%, but the real question is whether it will signal keeping the rate on hold for longer after last week’s disappointing GDP numbers.