The People’s Bank of China (PBOC) sets USD/CNY midpoint today at 7.1148 (vs. estimate of 7.2494)

The People’s Bank of China set the internal reference rate for the yuan (CNY) for the next trading session.

• USD/CNY is the local yuan. Trading plus or minus 2% of this daily reference price is permitted.
• CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.
• A rate that is much stronger or weaker than expected is usually considered a signal from the People’s Bank of China (PBOC).

The previous close was 7.2562

Ahead, what to expect in the future:

• HSBC expects USD/CNY reference rate to rise (RMB is weaker)

More is coming

People’s Bank of China pumps $86 billion through 7-day buffer reserve, sets interest rate at 1.8% unchanged

• 2 billion yuan is due today
• Net injection of 84 billion yuan into open market operations (OMOs)

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