PBOC is expected to set the USD/CNY reference rate at 7.3174 – Reuters estimate

The actual rate the People’s Bank of China set the onshore yuan at will be nowhere near that modelled estimate. The Bank has been leaning on the daily fix to support the yuan. Yesterday’s reference rate, for instance, was 7.1727. The fix today won’t be too far from there. This implies that the deviation from the model estimate may be around 1400 points, which would be a new record margin.

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