ICYMI – further intervention from China to support the yuan overnight

<p>USD/CNH is off its Thursday highs with Chinese State banks intervening to sell USD/CNY.</p><p>I gave a heads up to the intervention yesterday:</p><ul><li><a href="https://www.forexlive.com/centralbank/further-chinese-intervention-to-prop-up-the-yuan-state-banks-usdcny-sellers-20230817/" target="_blank" rel="follow" data-article-link="true">Further Chinese intervention to prop up the yuan: State banks USD/CNY sellers</a></li></ul><p>And Justin followed up with more later in the session:</p><ul><li><a href="https://www.forexlive.com/news/china-reportedly-told-state-banks-to-escalate-yuan-intervention-this-week-20230817/" target="_blank" rel="follow" data-article-link="true">China reportedly told state banks to escalate yuan intervention this week</a></li></ul><p>There was further selling by State banks during London time, but the impact has been small only:</p><p>Yesterday the People's Bank of China signalled very clearly it'd like the yuan to stop plunging so rapidly, with a reference rate more than 10 big figures away from the modelled estimate:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-usd-edges-higher-still-20230817/" target="_blank" rel="follow">its most aggressive setting divergence in this episode of yuan weakness so far and a sign the Bank wants to slow the descent of the currency</a></li><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-72076-vs-estimate-at-73047-20230817/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY central rate at 7.2076 (vs. estimate at 7.3047)</a></li></ul>

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