USD/CNH is trading strongly higher at the open of markets in China following People’s Bank of China (PBOC) yuan fix, which saw a reference rate at 6.5118 vs 6.5314 last fix. USD/CNH has been trading steadily lower for the past week while Chinese markets were closed amid broad-based USD weakness as odds for further rate hikes this year evaporate, as suggested by the CME Fed fund futures. The rise in USD/CNH should be seen as a re-adjustment of the offshore yuan to the latest onshore Yuan fix. Going forward, the more the USD/CNH remains under pressure, the more it should underpin a potential recovery of risk appetite, assuming global markets also stabilize. For more information, read our latest forex news.