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 7.1777. PBOC injects 13bn yuan in open market operations (OMOs) via 7-day reverse repos (RRs) at an unchanged rate of 1.9%. • 20bn yuan of RRs mature today. • Thus a net 7bn yuan drain on the day in OMOs. • For the week ... (full story)

I posted here earlier a bit of a recap of the People's Bank of China smashing the USD/CNH longs yesterday. The Bank set today's rate well below the expected yet again today: • PBOC sets USD/ CNY reference rate for today at 7.1456 (vs. estimate at 7.1965). Yuan traders were more wary today though, USD/CNH is not a lot changed since: {chart} (full story)