The Chinese yuan depreciated against the U.S. dollar in the Asian session on Thursday, as investors focused on a further deterioration in trade relations between Australia and China.

The yuan dropped to 6.4832 against the greenback, its lowest level since April 28. The yuan is likely to locate support around the 6.6 level.

The People's Bank of China set today's central parity rate of the yuan at 6.4895 per dollar, weaker than Friday's rate of 6.4672. The Chinese central bank sets central parity rate every morning and allows the yuan to fluctuate up to 2 percent from that level.

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