For the first time since March 2008, PBOC fixed the yuan weaker than 7 per USD. Offshore Yuan was leaking lower into the fix but rallied modestly on the 7.0039 fix (slightly stronger than the expectation of 7.0205) This shift enables offshore yuan to weaken down to 7.1440... But, as Nomura notes, it could be set to get worse. If it turns out that actual economic momentum in China has flagged to the extent suggested by the deterioration in Chinese equity sentiment, past patterns suggest that there is still scope for RMB to weaken further. The possibility remains that the yuan could depreciate even more against JPY and ... (full story)