People's Bank of China on shore yuan mid – rate setting
The People's Bank of China skipped open market operations today. 100 billion worth of reverse repose maturing today, China central bank drains a net 100 billion on the day.
The reference rate is above the 0.61726 yesterday. The survey expectation today was at 6.7282.
Looking at the USDCNH, the pair has a near symmetrical chart formation with lows in 2020 last week reaching near lows from the first quarter of 2019 (down to 6.6700). The high for 2020 stalled near the high from September 2019 at 7.19609.
The correction from the low last week, has moved up to test an old gap from 2019 between 6.75084 and 6.76742. The high today has moved between those levels but has stalled ahead of the high level (see yellow area in the chart below). A move above would be more bullish for the pair.
