People's Bank of China USD/CNY reference rate is due around 0115 GMT.

The People's Bank of China (PBOC), China's central bank , is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a "band," around a central reference rate, or "midpoint." It's currently at +/- 2% and some think it could widen to 3% this year. The PBOC governor on the weekend highlighted the trend towards more liberalization of FX.

How the process works:

Note that the PBOC's management of the yuan's exchange rate has been a source of controversy, with some arguing that the central bank undervalues the currency to gain a trade advantage. However, in recent years, China has been moving towards a more market-oriented exchange rate system and has allowed greater flexibility in the yuan's value.