The 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 6.4575
- Reuters estimate from their survey was 6.4592, Bloomberg 6.4609 .... (A rate that's significantly stronger or weaker than expected is typically considered a signal from the PBOC.)
This week the PBOC has been signalling, via the daily setting being stronger for the onshore yuan than was indicated in the surveys, it wanted a slowing (at least) of yuan appreciation. Wow .... Result. Of course, the US CPI data the factor pushing USD higher overnight.
PBOC injects 10 billion yuan liquidity via 7-day reverse repo
- No reverse repo mature today
- thus a net injection of 10bn yuan
