While the Chinese currency has been seen as a popular funding currency this year, it looks like Chinese authorities might be trying to intervene in money markets to make funding more expensive.

PBoC activity to drain CNH liquidity and support the currency is clearly incongruous with broader monetary easing to support the economy. This means that USD/CNH will probably not sell off that much further. 

But the strategy looks like one of buying time until the major Dollar trend turns, which may occur in the fourth quarter of this year.