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 7.1789
PBOC injects 544bn via 7-day RR, sets rate at an unchanged 1.8%
- 463bn yuan of RRs mature today
- thus a net 81bn yuan injection on the day in OMOs
Coming up at the bottom of the hour are the official PMIs from China for January
This article was written by Eamonn Sheridan at www.forexlive.com. Source