The turnaround in risk has had a couple of catalysts, earlier posts:
- China moves to stabilise the yuan, PBOC issuing bills in Hong Kong
- PBOC sets USD/ CNY reference rate for today at 6.9683 (vs. yesterday at 6.9225)
A recap via Reuters has the story in a nutshell:
China's tumbling yuan found a floor on Tuesday morning after
- a firmer than expected central bank fixing
- and a planned bond sale in the offshore market
suggested authorities wanted to contain the currency's recent slide to new lows.
More:
- Tuesday's mid-point fixing by the People's Bank of China … was firmer than market expectations
- PBOC's announcement of a sale of 30 billion yuan ($4.25 billion) worth of yuan-denominated bills in Hong Kong also suggested the central bank was soaking up cash to prevent speculative short-selling.
CNH turnaround:
