PBOC sets USD/ CNY reference rate for today at 7.1248 (vs. estimate at 7.2698)

Below is an extract from Eamonn’s handy posts regarding the
midpoint setting, and here is some further explanation of what it is and how it
works.

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 7.2629

The USDCNY is approaching the previous max pain level around 7.37 where the PBoC intervened in 2023 so worth keeping that level marked up.

This article was written by Arno V Venter at www.forexlive.com.