PBOC sets USD/ CNY mid-point today at 6.5207 (vs. yesterday at 6.4968)

After the mid rate setting yesterday there was a bit of PBOC yuan news, most notably:

• China is said to have suspended counter-cyclical factor in daily CNY fix

The implication of this from the Bank is its expressing lesser concern on a weaker CNY. The response from the AUD on the news was swift (sry!), it dropped from around 0.7860 to lows around 0.7820 (and then a little lower during US trade)

Today's reference rate is a big devaluation for the CNY against the USD.

In OMO's (first for 13 days), People's Bank of China to inject

• 60 bn yuan through 7 day reverser repos
• and 60 bn yuan via 14-dayers

Injections today match maturities