Technical Analysis

PBOC sets USD/ CNY mid-point today at 7.2189 (vs. estimate at 7.2015)

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

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