The People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

  • USD/CNY is 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.

  • The previous close was 6.4578
  • Reuters surveyed estimate was .... 6.4679 (A rate that's significantly stronger or weaker than expected is typically considered a signal from the PBOC).

PBOC taking note of the stronger USD overnight and using the opportunity to take a little further strength out of the yuan.

PBOC injects 10 billion yuan liquidity via 7-day reverse repo

  • 30bn maturing today

  • thus a net 20 bn yuan drain