People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.
- USD/CNY is 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.
- The previous close was 6.4440
- Reuters estimate was 6.4507. A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.
Strongest for the CNY since June 18
PBOC injects 10bn yuan via 7-day reverse repos
10bn RRs mature today
thus net neutral on the day
Note, I'm expecting the latest from the People's Bank of China on its 1 year Medium-Term Lending Facility (MLF) Rate sometime this week, between today and Thursday.
