Yeah is funny isnt it Sera, today the Yuan has weakened courtesy...

Yeah is funny isnt it Sera, today the Yuan has weakened courtesy of Chinese state banks buying USD (refer article below) - funny hey i thought they were going to make it more flexible, yet only day 2 and they are already manipulating it lower. I only see this as political posturing pre G20. They have such an unbalanced economy, a change to a less export focused more internal consumption focus is a very painful and long process - think of where all the employment is at the moment, and think of their incredibly large US treasury position.

As far as i see it the Chinese would prefer to make it look like they are going to do something, to appease the likes of the US, but in actual fact not really do anything at all. We have been here many times before, the Chinese are masters at playing this game and realise the aces are in their pocket. The US might have to go all in with their pair of 2's (trade sanctions) at some point before they run out of chips!!

http://www.cnbc.com/id/37838488