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 7.1953
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PBOC injects 329bn via 7-day RR, sets rate at an unchanged 1.8%
- 137bn yuan of RRs mature today
- thus a net 192bn yuan injection on the day in OMOs