Technical Analysis

PBOC sets USD/ CNY reference rate for today at 7.0384 (vs. estimate at 7.0368)

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

The People’s Bank of China has set the CNY at its strongest (i.e. lowest for USD/CNY) since mid-November. The signs of reopening in China is giving the yuan a boost.

PBoC injects 2bn yuan of 7-day reverse repos at an unchanged rate of 2.0%

55bn yuan of RRs mature today

thus a net 53bn yuan drain on the day


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