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 7.2345
Wow, 7.068 vs. 7.2622 the model estimate. That is a HUGE gap, biggest ever going back to 2018. The People’s Bank of China is not giving up on supporting the yuan.
PBOC injects 2bn via 7-day RR, sets rate at an unchanged 1.8%