There hasn’t been much pushback or warnings against a higher currency by the Chinese local media
While the onshore yuan is still holding just above 6.40 against the dollar, the offshore yuan is already starting to test waters below that and so far the Chinese media is looking rather sanguine about the whole thing. This from the Global Times:
Offshore yuan exchange rate has advanced to 6.3960 yuan against the US dollar, on Tuesday, the highest level since June 2018, reflecting China’s promising economic outlook.
That doesn’t really sound like Chinese officials are going to offer much pushback to the latest moves but we will have to see what the PBOC has in mind when it comes to the fixings over the next few days to be certain of anything.
But if so, then there might be room for the dollar to keep weaker for now especially with technicals also starting to be breached against some major currencies.