People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead. Setting it notably weaker (for the CNY) than was estimated.
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 7.2320
The trade-weighted yuan basket drops to 98.63, lowest since 10 September 2021
Inflation data from China due soon:
China inflation data for October is due at 0130 GMT – preview
PBoC injects 8bn yuan of 7-day reverse repos at an unchanged rate of 2.0%
18bn yuan of RRs mature today
thus a net 10bn yuan drain on the day