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. Previous close was 7.2120. Today's mid rate is nearly 1100 pips lower than the estimate. PBOC injects 150bn via 7-day RR, sets rate at an unchanged 1.8% • 5bn yuan of RRs mature today. • Thus net 145bn yuan injection on the day in OMOs. (full story)

The People's Bank of China is continuing to support the yuan, setting its reference rate today nearly 1100 pips lower than the estimate. • PBOC sets USD/ CNY mid-point today at 7.0943 (vs. estimate at 7.2037). • Once again AUD and NZD have seen a few bids right around this time. NZD/USD retracing already: {chart} (full story)