With the Group of 20 summit starting in Hangzhou next Sunday, it is time to cast a glance across the South China Sea and notice the subtle moves in the offshore yuan’s exchange rate. Perhaps helped along by the People’s Bank of China, which increased money market liquidity on Friday with repurchase agreements, the offshore yuan reached this month’s highest point and matched January’s highest close. The level of 6.685 per US dollar coincides with a Fibonacci 78.6 per cent retracement resistance, so technical analysts will not be surprised by the struggle here. Note also that 6.69 was the highest point in October 2010. We continue to target a test of the top of a triangle consolidation and an eventual break to new highs – though just not this week.