Offshore yuan getting slammed lower after surprise PBOC rate cuts

<p>The People's Bank of China cut the MLF to 2.5% from 2.65 previously:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-1-year-mlf-rate-cut-to-265-prior-275-as-widely-expected-20230615/" target="_blank" rel="follow" data-article-link="true">PBOC 1 year MLF rate cut to 2.65% (prior 2.75%), as widely expected</a></li></ul><p>And cut the reverse repo rate to 1.8% from 1.9% previously</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-reference-rate-for-today-at-71768-vs-estimate-at-72648-20230815/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY reference rate for today at 7.1768 (vs. estimate at 7.2648)</a></li></ul><p>Offshore yuan, CNH, getting sold healivly:</p><p>Coming up at the top of the hour, China economic data for July:</p><ul><li><a href="https://www.forexlive.com/news/economic-calendar-in-asia-15-august-2023-data-for-july-from-china-20230814/" target="_blank" rel="follow" data-article-link="true">Economic calendar in Asia 15 August 2023 – Data for July from China</a></li></ul><p>I think it fair to have low expectations for these given the PBOIC has cut rates.</p>

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