The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
- CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
- A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
The previous close was 7.2920
The 7.1733 rate is a massive 1100+ points away from the modelled estimate of 7.2839. The People’s Bank of China is continuing to aggressively support the yuan.
more to come
This article was written by Eamonn Sheridan at www.forexlive.com. Source