PBOC sets USD/ CNY reference rate for today at 7.2208 (vs. estimate at 7.2540)

<p>People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.</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><li>A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.</li></ul><p>The previous close was 7.2390</p><p>The People's Bank of China with a stronger than expected rate for the yuan. Signalling more forcefully it'd like to slow the decline of the currency. I suspect they are not trying to put a floor under it, just to slow it still though. Offering up a buy the dip scenario for USD/CNH. </p><p>PBOC injects 193bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%</p><ul><li>0bn yuan of RRs mature today</li><li>thus a net 193bn yuan injection on the day in OMOs</li></ul><p>eur</p>

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