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 7.2790
The PBOC is still sitting on the fixing rate to support the yuan. Another 10+ big figure difference between the modelled estimate and the actual.
Yuan has stabilised with the PBOC actions:
PBOC injects 221bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%
- 98bn yuan of RRs mature today
- thus a net 123bn yuan injection on the day in OMOs
This article was written by Eamonn Sheridan at www.forexlive.com. Source