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 7.1960
PBOC injects 71bn via 7-day RR, sets rate at an unchanged 1.8%
- 65bn yuan of RRs mature today
- thus a net 6bn yuan injection on the day in OMOs
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Coming up on Monday is the PBOC rate setting for Loan Prime Rates (LPRs). I’ll have more to come on this separately.
This article was written by Eamonn Sheridan at www.forexlive.com. Source