AUD remains unaffected by huge moves in CNY

First thing this morning we saw a sharp move higher in USD/CNY, orchestrated by agent banks of the PBOC. Their ploy was obviously to force the big speculators out of the USD/CNY before any band-adjustments can take place and they seem to be having some success. After a relatively quiet afternoon, Europe has opened to some very heavy buying in both the USD/CNY and USD/CNH with US prime brokers to the fore (on behalf of big Macros one would think).

The interesting thing is that the AUD hasn’t fallen in reaction to the weakening CNY. If we are in position squaring mood, maybe the Aussie will actually go up!