What will happen if China allows its currency to strengthen this year? Currently there is a positive correlation between stocks and commodities but RMB appreciation could lead to:- Commodities in $ prices UP as now cheaper for China to buy or stocks DOWN due to the 'signaling' effect of a tighter monetary policy in China? I guess $ and US Treasuries will selloff initially, a lot would depend on whether RMB appreciation is large (10%) and deemed one-off, or small (2%) with expectations of further gradual gains... Does anyone recall what happened the last time RMB strengthened?