PBOC sets USD/CNY at 6.1351, AUD/USD weaker

FXStreet (Bali) - PBOC set the USD/CNY fix at 6.1351 vs 6.1341 yesterday. Prior close was close at 6.1920, with talk in the market that if USD/CNY trades above the 6.20 mark, it may cause some models/structures being triggered, potentially leading to a snow ball effect that may cause even further Yuan depreciation.

The decision has led to a weaker AUD/USD, currently at 0.9115 from a session high of 0.9137, with plenty of selling interest reported circa 0.9140, where the 200-day MA and a trendline coming from 1.0540 meet. On the downside, next support can be found around the 0.91 round number, March 13 high.