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 7.0978
7.0770 is the strongest fixing rate for CNY since 29 May 2023
PBOC injects 137bn via 7-day RR, sets rate at an unchanged 1.8%
- 1006bn yuan of RRs mature today
- thus a net 869 bn yuan drain on the day in OMOs
This article was written by Eamonn Sheridan at www.forexlive.com. Source