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 7.0640
Let's wait to see if the PBoC does anything with the repo rate. There was no change to the LPRs:
In open market operations (OMOs):
- PBOC injects 572bn via 7-day RR, sets rate at 1.7%, an unchanged rate
- 236bn yuan reverse repo expire today
- net 510.3 bn liquidity 335 injection into the market
more to come
