Some volatility is seen in USD/CNH today after the pair dips to as low as 6.9633 on broad based Dollar weakness, but recovers back above 7 handle quickly. Escalating US-China political tension is seen as a major factor driving the moves.
China’s foreign Ministry spokesman Wang Wenbin revealed that the US government gave China three days to close its consulate in Houston. Wang criticized that as “unprecedented escalation” and pledged to “react with firm counter measures if the US doesn’t “revoke this erroneous decision”.
