China set the yuan weaker for the second day in a row

China’s PBOC has fixed the yuan at 6.3306 on Wednesday morning, weaker than where the spot price closed yesterday at 6.3250.

It was the weakest fixing since October 2012.

On Tuesday the PBOC fixed the USD/CNY at 6.2298, nearly 2% below the level seen on Monday following an unexpected currency devaluation.

Like yesterday risk assets have sold off on the news, albeit to a lesser degree.

The ASX 200 – down 0.2% prior to the announcement – is now of by 0.65%.

The Australian dollar, having tumbled yesterday, is now down 0.55% at .7262.

The US dollar index is also gaining, pressuring most other major currency pairs.

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