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PBoC sets a higher USD/CNH daily fix, easing pressure on the yuan
USD/CNH briefly fell to 6.7060, then rebounded after the PBoC raised the daily fix to 6.7795, acting as a speed limiter on further yuan gains.
OCBC reports that USD/CNH briefly dropped to its lowest level since February 2023, reaching an intraday low of 6.7060 before rebounding.
The rebound followed the PBoC setting a higher-than-expected daily fixing rate of 6.7795, compared with the prior fix of 6.7787.
OCBC’s Christopher Wong said policymakers appear to be leaning against the pace, not the direction, of RMB appreciation, with the fix intended to cap the speed of any further gains.
The note also highlighted that subdued USD demand and underlying RMB resilience may keep USD/CNH biased lower, with 6.7060 and 6.70 cited as support and 6.7180 and 6.7270 as resistance.