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 7.2768
PBOC injects 105bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.8%
- PBOC inject 34bn via 14 day RR, sets rate at 1.95% vs. 2.15% previously
- 363bn yuan of RRs mature today
- thus a net 224bn yuan drain on the day in OMOs
This: PBOC sets 14 day RR rate at 1.95% vs. 2.15% previously
- is another rate cut from the Bank
- we haven't had a 14 dayer in many months
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And, coming up still from China: