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 7.0640
Let’s wait to see if the PBoC does anything with the repo rate. There was no change to the LPRs:
China leaves 1- and 5-year Loan Prime Rates (LPR) unchanged
In open market operations (OMOs):
PBOC injects 572bn via 7-day RR, sets rate at 1.7%, an unchanged rate 236bn yuan reverse repo expire today
net 510.3 bn liquidity 335 injection into the market
more to come
This article was written by Eamonn Sheridan at www.forexlive.com.
