USD/CNH slips as China acts to stem stock market falls

Yesterday I alerted readers about the official, yet covert action in the Chinese markets to try and stem the falls in the equity markets there. Well, it seems that insight was rather timely, because today the PBOC has acted in a much less covert way, as they seek to stem the falls, blaming it all on speculators. Look, this is actually pretty daft, but such rhetoric we should expect from the authorities. Chinese investors have been selling their own stock markets for good reason, because given the fundamentals that has been the right thing to do. Leaving that aside, the Chinese markets have come roaring back today and that has helped to push the USD/CNH lower. Given the rate of change in stocks today, it is perhaps a little surprising the USD/CNH is not lower than it is right now. It is currently trading at around 7.20 from an earlier high around 7.22