Newsig · Forex News

PBOC is expected to set the USD/CNY reference rate at 6.7148 – Reuters estimate

The fixing mechanism matters most right now because of what it has been signalling over recent weeks. The PBOC set its reference rate at the widest weak side deviation from market estimates in six months in late August, after the yuan touched a three and a half year high, a clear sign of discomfort

Why it matters

USD/CNY (US Dollar / Chinese Yuan) · Why linked: The headline directly references the USD/CNY reference rate fix Market context: slightly bearish for CNY — reference rate weaker than market estimates signals PBOC tolerance for yuan weakness

FXI (China Large-Cap) · Why linked: A weaker yuan fixing can pressure Chinese equity valuations and capital flows Market context: slightly bearish — weak-side reference rate deviation signals PBOC comfort with yuan depreciation

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