The PBOC cracking 7.1 in its USD/CNY fix has sent the USD lower across the board

7.1 is a 'round number' psychological level for the USD/CNY refernce rate fixing.

Today:

• PBOC sets USD/ CNY mid-point today at 7.0995 !!! (vs. estimate at 7.1281)

EUR, AUD, GBP .... all have popped.

I wouldn't be looking for an extended follow through in the hours ahead, we may have to wait for Europe and the US. EUR/USD looks like it may well be pinned by this:

• EUR4.13bn strikes in EUR/USD circa 1.1600. A likely magnet for EUR/USD in Asia.