The Traderszone Network

The U.S. dollar lunged higher on Tuesday as China allowed its yuan to fall to three-year lows, a shift that heightened unease about the world’s second-largest economy even as it promised a much-needed boost to exports. China’s central bank described the move as a “one-off depreciation” of nearly 2 percent, and said it was based on a new way of managing the exchange rate that better reflected market forces. Investors reacted by selling the Australian dollar, often used as a liquid surrogate for the Chinese currency.

So says a Greek fin min official on Reuters
More detail to follow
Euro less than impressed for the moment
EURUSD 1.0969 EURGBP 0.7045 EURJPY 136.84 all still near session lows

Here’s the take of CIBC HK strategist Patrick Bennett via Bloomberg
– yuan fixing reform to increase useage as market can now see the ccy as being more reactive to changing economic conditions
A sensible enough angle and highlighting the on-going reform that has been going on from China to make the yuan more freely traded

Greetings one and all
So the PBOC spring their surprise and these thin seasonal markets get a shot in the arm. We  wait to see the full extent of the fallout

U.S. authorities are set to unveil charges against a group that plotted to get hold of M&A press releases before the deals were public, the WSJ reported.

Welcome to the Squawk Box Live blog. Stay tuned for analysis on China’s currency devaluation and Google’s structural shake-up.

USDJPY 125.00 (USD 215m)
– EURUSD
– GBPUSD 1.5500 (GBP 217m) 1.5525 (168m)
– USDCAD 1.3000 (USD 125m)
– AUDUSD 0.7435 (150m)
– NZDUSD 0.6550 (NZD 100m) 0.6700 (373m)
Note the large AUDUSD expiry close by to prevailing rate (0.7318). Already looks like it may be a level to be defended given the demand into the price. Lows so far 0.7306