China's foreign reserve data to be released on Chinese New Year Eve is likely to be the catalyst for the next CNY move. If there is another big drop in the reserves, the market could speculate more depreciation in Chinese currency. 

As long as PBoC intends to steer a "managed floating" in its currency, the central bank will have to fight back by burning its foreign reserves. China's current account surplus likely printed a new historical high at around $300bn in 2015, but capital outflows in the same year eroded around $640 bn from it.

The large increase in capital outflows is a result of narrowing onshore-offshore interest rate differentials, lower investment return in China related to over-investment and over-capacity, and the reversion in currency expectations.