Yuan’s Big-Money Bears Killing Rallies Before They Take Hold

  • Stronger yuan fixings bring out sellers on big volumes
  • Potential Fed rate increase may test market after G20 calm

The Yuan's Big-Money Bears Are Killing Rallies

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Yuan bears are turning rallies in the Chinese currency into increasingly short-lived affairs.

Every time China’s central bank has strengthened its yuan fixing by more than 0.3 percent over the past month, the currency erased initial gains on larger-than-average volumes, according to data compiled by Bloomberg. On days when fixings were cut by the same amount, trading was subdued.