PBOC sets USD/CNY reference rate at 6.9654 vs. 6.9481 previous

Anil Panchal FXStreet

People’s Bank of China (PBOC) set the USD/CNY central rate at 6.9654 on Monday, versus previous fix of 6.9481 and market expectations of 6.9658. It's worth noting that the USD/CNY closed near 6.9585 the previous day.

With this, the PBOC announced the lowest USD/CNY rates since March 10.

Apart from the daily fix, the PBOC also unveils the numbers for its Open Market Operations (OMO), which in turn suggests that the Chinese central bank injects 2.0 billion Yuan via 7-day reverses repo at 2.0% rate as wel las 125 billion via one-year Medium-term Lending Facility (MLF) rate of 2.75%.

About PBOC fix

China maintains strict control of the yuan’s rate on the mainland.

The onshore yuan (CNY) differs from the offshore one (CNH) in trading restrictions, this last one is not as tightly controlled.

Each morning, the People’s Bank of China (PBOC) sets a so-called daily midpoint fix, based on the yuan’s previous day's closing level and quotations taken from the inter-bank dealer.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

GBP/USD edges lower below 1.3650, with eyes on US PCE data

GBP/USD trades with a negative bias below 1.3650 in the European session on Wednesday, eroding a part of the previous day's strong gains. The pair, however, remains within striking distance of a six-month top, set last Friday, as traders keenly await the release of the US Personal Consumption Expenditures (PCE) Price Index data for a fresh impetus.

EUR/USD remains sidelined around 1.1670 post US-PCE

EUR/USD alternates gains with losses around 1.1670 on Wednesday. The pair’s retracement comes on the back of modest gains in the US Dollar in the wake of the release of July PCE data and another revision of Q2 GDP figures.

Gold corrects to near $4,620 in countdown to US PCE Inflation data

Gold price is down 0.75% to near $4,620 during the European trading session. The precious metal corrects as the rally pauses after posting a fresh three-month high at $4,697 the previous day, with investors turning cautious ahead of the United States Personal Consumption Expenditure Price Index (PCE) data for July at 12:30 GMT and Federal Reserve Chairman Kevin Warsh’s commentary at the Jackson Hole Symposium.

Bitcoin recovery stalls near $80,000 as ETF inflows mount, whale demand strengthens

Bitcoin price is trading in the green on Wednesday, holding above $78,000 while struggling to extend its recovery above the $80,000 mark. Institutional demand is strengthening, with steady inflows and BlackRock’s tax-deferred Bitcoin-to-ETF swap volume reaching $5 billion.

Nvidia: How will the company perform as its switches from a chip maker to an AI finance house?

The main event for markets this week takes place this evening, after US markets close. Nvidia, the AI giant, will report results for last quarter. Another monster report is expected. Revenues could come in above $92bn, and earnings per share could come in at $2.09.

Canada hits US goods with tariffs; The rate market sees a problem

On September 8, Canada begins charging its own importers 15%, 25% and 50% on roughly 700 lines of American goods. The measure is billed as dollar for dollar, and on the arithmetic of covered trade it is. What it is not is a tax on the United States.