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.
Previous reference rate was 7.2355.
The setting at 7.1991, about 300-odd points lower than the modelled estimate is indicative of the PBoC pushing back against yuan weakness. AUD/USD has popped a little on the setting of a stronger than expected yuan.
PBOC injects 233bn yuan via 7-day RR, sets rate at 1.5%
17bn yuan mature today
net injection is 216bn yuan
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This article was written by Eamonn Sheridan at www.forexlive.com.
