ForexLive Asia-Pacific FX news wrap: PBOC slows the fall in the yuan

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The
People’s Bank of China fixed the onshore yuan stronger than
expected at the reference rate setting today. The expected rate was
just shy of 7.22 but the Bank set USD/CNY under 7.21. This was the
second day in a row the PBOC had set the CNY stronger than expected.
The yuan has been losing value rapidly and while the Bank is not
unhappy with the decline it is not comfortable with too rapid a pace.

</p><p>With
a stronger than expected CNY the offshore yuan jumped higher. Other
major FX also gained. EUR, CAD, GBP, AUD, CHF, NZD all higher.
AUD/USD has been a particular beneficiary, its over 0.6700 as I
update.</p><p>USD/JPY,
of course, is in its own world, its not a lot change on the session
circa 143.40.</p><p>Chinese Premier Li Qiang gave a speech, he said nothing on economic stimulus. He said China is on course to achieve its around 5% economic growth target in 2023.</p><p>Asian
equity markets:</p><ul><li><p>
Japan’s
Nikkei 225 -0.8%</p></li><li><p>
China’s
Shanghai Composite +0.6%</p></li><li><p>
Hong
Kong’s Hang Seng +1.2%</p></li><li><p>
South
Korea’s KOSPI -0.3%</p></li><li><p>
Australia’s
S&amp;P/ASX 200 +0.6%</p></li></ul><p>Offshore yuan strength.</p>

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