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 7.2538
PBOC injects 278bn via 7-day RR, sets rate at an unchanged 1.8%
2 bn yuan mature todaya net 276 bn yuan injection Open Market Operations (OMOs)
Keep an eye on this:
HSBC expect the USD/CNY reference rate to drift higher (yuan weaker)
This article was written by Eamonn Sheridan at www.forexlive.com.
