PBOC dep gov Yi Gang out with a statement

  • demand for other commodities will be strong
  • will continue to make yuan exchange rate more flexible
  • will put more emphasis on basket regime for yuan
  • there will be increased fluctuations for yuan vs USD
  • yuan will be relatively stable vs basket of ccys
  • China has independent monetary policy, can still control interest rates
  • yuan internationalization will be market driven
  • PBOC will continue to facilitate market-driven yuan process
  • will maintain delicate balance between reforms and stability

Nothing we didn't already know but repeating the emphasis on yuan value vs basket rather than USD. Plus encouraging news for commodities if proven to be true.

Meanwhile the Shanghai Comp Index is currently down -3.87% just off session lows while Nikkei is up +1.56% but off session highs. Minimal impact therefore overall on risk related price action but USDJPY doing its usual and following Nikkei higher.