Earlier:
PBOC cuts 7 day reverse repo rate to 1.5% (prior 1.7%)People’s Bank of China cuts RRR by 50bp
Also, as you’ll note below, the 14-day reverse repo rate has been cut to 1.65%, from 1.85%.
The cuts were promised earlier this week. I’m wary of a ‘sell the fact’ response today,
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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 7.0110
In open market operations (OMOs):
PBOC injects 333bn via 14-day RR, sets rate at 1.65%, lowered from 1.85%572 bn yuan reverse repo expire todaynet 239bn liquidity drained from the market in OMOs today
This article was written by Eamonn Sheridan at www.forexlive.com.
