China promised more stimulus, PBOC strengthened CNY – yuan rising in early China trade

The news out of China on Monday was of more promised support for the economy:

• China pledge to step up policy support underpins rally in oil and Chinese equities

• On Monday China promised more stimulus. Another promise, or for real this time?
• Rate cuts, tax cuts, fee reductions expected from China says state-sponsored finance media

In addition the People’s Bank of China once again set the CNY much higher than expected:

• PBOC sets USD/ CNY central rate at 7.1406 (vs. estimate at 7.2044)

Offshore yuan has been boosted by the combined impacts:

• 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.

This article was written by Eamonn Sheridan at www.forexlive.com. Source