PBOC sets USD/ CNY reference rate for today at 7.0709 (vs. estimate at 7.0794)

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.

In open market operations (OMOs):

• PBOC injects 41.7bn yuan via 7-day RR, sets rate at 1.5%

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Due later:

• China reopens today after the long holiday – with a “stimulus” press conference @ 10am

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