Flash: Watch CNY forward curve - RBS

FXStreet (Bali) - Greg Gibbs, FX Trading Strategist at RBS, recommends to keep an eye on the CNY forward curve as a barometer to assess financial stress in China.

Key Quotes

"Evidence of financial stress in China might be seen in the CNY forward curve. This has hardly risen, and is much lower than mid-2013."

"Volatility in CNY spot may and metals may be triggering some financial stress, but overall the evidence is mixed. Unless the CNY forward curve steepens significantly, AUD and JPY (risk proxies) may remain supported."