China promised more stimulus, PBOC strengthened CNY – yuan rising in early China trade

<p>The news out of China on Monday was of more promised support for the economy:</p><ul><li><a href="https://www.forexlive.com/news/china-pledge-to-step-up-policy-support-underpins-rally-in-oil-and-chinese-equities-20230724/" target="_blank" rel="follow" data-article-link="true">China pledge to step up policy support underpins rally in oil and Chinese equities</a></li></ul><ul><li><a href="https://www.forexlive.com/news/on-monday-china-promised-more-stimulus-another-promise-or-for-real-this-time-20230724/" target="_blank" rel="follow" data-article-link="true">On Monday China promised more stimulus. Another promise, or for real this time?</a></li><li><a href="https://www.forexlive.com/centralbank/rate-cuts-tax-cuts-fee-reductions-expected-from-china-says-state-sponsored-finance-media-20230725/" target="_blank" rel="follow" data-article-link="true">Rate cuts, tax cuts, fee reductions expected from China says state-sponsored finance media</a></li></ul><p>In addition the People's Bank of China once again set the CNY much higher than expected:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-71406-vs-estimate-at-72044-20230725/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY central rate at 7.1406 (vs. estimate at 7.2044)</a></li></ul><p>Offshore yuan has been boosted by the combined impacts:</p><ul><li>USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.</li><li>CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.</li></ul>

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