China’s central bank set its reference rate for the Yuan weaker than 6.7 per dollar. This is the biggest single day devaluation of the Chinese currency since June 2016.
Commodity currencies under-performed in overnight trading. The Aussie had a bump up on its value of the back of positive employment figures yesterday. However, the American trading session saw the currency unwind those gains. The Kiwi too shred some points of the back of strengthening US dollar.
Meanwhile, US president Trump expressed concern about their US dollar’s strength and Federal Reserve’s interest rate hikes. In an interview with CNBC, the president said that the weakening Chinese Yuan puts US at a disadvantage making their exports more expensive due to string US dollar.