China FX reserves end-July data was out yesterday

Via HSBC:

  • China's FX reserves increased by USD23.9bn in July to USD3.08trn, the sixth consecutive rise.
  • excluding the translation effects on reserves, it appears the PBoC bought around USD2.2bn in the month.
  • FX reserves have been on a rising trend, largely as a function of the translation effects of a weaker USD, but the net purchases in July may reinforce the market's positive view of the RMB.

So, I'm sorta wondering why the PBOC bought USD on the month - politics?

Dunno.

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Anyway,

USD/CNY mid rate for the day is coming up.

And trade balance data due later .