The yuan depreciation/devaluation continues at pace

Weaker data out from China adding to its woes

Next resistance for USDCNH seen at 6.7000 (Sept 24 2010 high)

CNH-CNY spread has widened to a fresh record of 1345 pips and that remains a key problem for China to address if convergence is to be achieved

Earlier the PBOC set USDCNY mid-session fix at 6.5314 , the weakest for CNY since April 2011

Meanwhile Shanghai Comp Index currently up 1.45% at 3336.18

Update 06.05 GMT

  • USDCNH climbs further to 6.6920
  • CNH-CNY spread above 1400 pips
  • USDCNH well above the top of the 2% band (6.6620)