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 7.2372. PBOC injects 2bn via 7-day RR, sets rate at an unchanged 1.8%. • 4bn yuan of RRs mature today. • Thus net 2bn drain on the day in OMOs. (full story)