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 6.7689
People's Bank of China:
injects 133bn of 7-day reverse repos (RR) in open market operations (OMO), rate unchanged at 2.0% injects 447bn yuan in 14-day RRS, rate unchanged at 2.15%
65bn yuan of RRs mature today
Thus a net 515 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.