China FX Reserves Rise $6 B in July

China's forex reserves rose $6 billion in July, or 0.2 percent. The U.S. Dollar Index decreased slightly during the month. Last month, a rising dollar helped trim China's reserve accumulation.

The bigger story is SDR reserve accumulation fell from 16.8 billion in June to 6.8 billion.

Sine the PBoC didn't support the yuan until August, it's not a surprise to see stable reserves. Assuming the U.S. dollar doesn't breakout to the upside in August, the PBoC won't have to work hard to stabilize the yuan. Everything is in the hands of the greenback now.