PBOC sets USD/ CNY reference rate for today at 7.0644 (vs. estimate at 7.0637)

The 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 7.0640

Let’s wait to see if the PBoC does anything with the repo rate. There was no change to the LPRs:

• China leaves 1- and 5-year Loan Prime Rates (LPR) unchanged

In open market operations (OMOs):

• PBOC injects 572bn via 7-day RR, sets rate at 1.7%, an unchanged rate
• 236bn yuan reverse repo expire today
• net 510.3 bn liquidity 335 injection into the market

more to come

This article was written by Eamonn Sheridan at www.forexlive.com.