Chinese yuan at its strongest against the dollar in three months

<p>A <a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-reference-rate-for-today-at-71612-vs-estimate-at-72320-20231120/" target="_blank" rel="follow">stronger PBOC fixing</a> earlier today has been a catalyst for a push higher in the Chinese yuan, which in turn has helped out the antipodean currencies today as noted <a href="https://www.forexlive.com/news/audusd-stays-on-track-for-a-stronger-technical-breakout-20231120/" target="_blank" rel="follow">here</a>. The onshore yuan is now at its highest against the dollar since early August and that's a sign of waning appetite in the greenback in general as one of its key tailwinds this year is now removed.</p><p>That's a worrying signal for the greenback as investors are starting to come around to the idea of a recovery in the yuan, or in the Chinese economy. Or perhaps it is a signal of improving risk appetite in general. But whatever the case is, it's not good news for the dollar. That's for sure.</p><p>Given the considerations we're seeing, there is reason to expect the dollar's recent retreat to extend a bit more in trading this week it would seem.</p>

This article was written by Justin Low at www.forexlive.com.