PBOC units USD/ CNY reference price for at the moment at 7.1335 (vs. estimate at 7.2624)

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

• USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.
• CNH is the offshore yuan. USD /CNH has no restrictions on its trading range.
• A significantly stronger or weaker rate than expected is typically considered a signal from the PBOC.

The previous close was 7.2698

Earlier:

• China cuts 1 and 5 year loan prime rates by 10 basis points each

• PBoC announces cut to 7-day reverse repo rate to 1.70% from 1.80%

• PBOC to lower collateral for Medium-term Lending Facility (MLF) loans

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In open market operations:

• PBOC injects 58.2bn via 7-day RR, sets rate at 1.7% (this is the new rate announced earlier, from 1.8%)

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