• 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 6.6921

A substantially stronger setting for the CNY (that is, lower USD/CNY) than was expected. An indication from the PBOC it'd like to stabilise the yuan at present. The PBOC has been steadily nudging the CNY higher than expected at the setting each day for over a week. Today's is a much bigger step. ITs 731 points from Friday's mid rate, this is the alrgest move between two mid-rate sestting since July of 2005.

The PBOC inject 10 yuan via 7 day reverse repos (rate remains at 2.1%)

  • 10bn yuan mature today
  • thus a net neutral