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 6.7380

People's Bank of China:

injects 205bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0%
injects 301bn yuan in 14-day RRS, rate unchanged at 2.15%

2bn yuan of RRs mature today

Thus a net 504 bn yuan injection.

The hefty injections comes ahead of the extended Lunar New Year holiday that begins on January 21. Demand for cash surges over this holiday break.

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Coming up from China around 0200 GMT:

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