“China’s strategy seems simple: Find the pain points. Apply pressure.
Watch Trump go bonkers on Twitter. Trade war rhetoric has been translated into reality over the past week, and the Chinese yuan is now part of Beijing’s armoury.
China has sent a message that a hard yuan level won’t be defended – and shown it has the mettle to carry through. Tactically further yuan weakness could be expected in the short term. But strategically, China’s long term goals are best served by a stronger yuan”.
Robert Guy, writing in AFR