Fundamental valuations are right twice, like a broken clock
is right twice a day. When technicals
price something too low then on the way back up the price crosses the true value
of that something. Then back on the way
down the price crosses the true value of that something once again.
Who cares whether the Chinese RMB is overvalued or
undervalued. Its price is all that
matters and how it affects things at the price.
Expectations will move the price of currencies more than what the prices
is supposed to be. It is a guessing game by more and less informed players.