Many analysts said the interest rate cut was an adjustment to monetary policy objectives, which was inconsistent with the policy tone, hence chances of such a move were very low
Sun maintained his forecast for the yuan to trade in a range of 6.45 to 6.49 per dollar for the near time, with some upside risks to the Chinese currency
"The overarching point is that there is a shifting balance of risks on the renminbi towards a less positive outlook, even as important fundamental tailwinds remain," Tan said
"CGBs provide diversification benefits, while there was also the RRR cut in the month which had supported the bond market sentiment," strategists at OCBC Bank said in a note
Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 6.4763 per dollar, 113 pips or 0.17% weaker than the previous fix of 6.4650
In the spot market, the onshore yuan opened at 6.4685 per dollar and was changing hands at 6.4716 at midday, 15 pips weaker than the previous late session close
That is the Aussie's lowest level since July 12, 2020, despite commodity prices that remain near multi-year highs, and is far from the currency's February high of $0.80
The Nikkei share average fell 2.24% to 27,488.25 by 0215 GMT, falling below the 28,000 mark for the first time since June 21. The broader Topix dropped 1.92% to 1,883.38