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.
- Reuters estimate was 6.4372. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
- The previous close was 6.4285
- Yesterday's mid-rate was 6.4612
Weaker than expected for the CNY from the PBOC mid-rate. Still the strongest for CNY mid rate since the middle of last month.
PBOC injects 10bn yuan via 7-day reverse repos
100bn RRs mature today
thus net 90bn yuan drain on the day - subtracting liquidity after the holiday continues
