PBOC set the onshore yuan stronger than expected, USD/CNH tumbling

<p>I posted earlier on likely moves from the People's Bank of China to slow down the drop for the yuan:</p><ul><li>Yuan has had a one-way ticket to weakness. The PBOC have been supportive of the devaluation, a lower yuan is a form of stimulus for the export sector.

<a href="https://www.forexlive.com/centralbank/pboc-is-expected-to-set-the-usdcny-reference-rate-at-72194-reuters-estimate-20230627/" target="_blank" rel="follow">The rapid pace of the fall is expected to result in the PBOC moving to slow the descent</a>.</li></ul><p>Which is what we have today. While the CNY is weaker, its been set not nearly as weak as was expected:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-72098-vs-estimate-at-72194-20230627/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY central rate at 7.2098 (vs. estimate at 7.2194)</a></li></ul><p>USD/CNH has dropped (CNH is the offshore yuan, its gained from its earlier lows on the back of the PBOC CNY reference rate today)</p>

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