Dollar's Jump May Reveal China's Line in the Sand for Yuan

China’s bid to rein in appreciation pressure on the yuan will get a helping hand from dollar today, and also provide the market with some valuable intelligence.

How far the People’s Bank of China lets the yuan pull back during this session could indicate to traders the level they’re comfortable with right now. The central bank issues a reference rate for the currency versus the dollar each day and allows it to move 2 percent either side of that rate.