PBoC is expected to set USD/CNY mid-point at 6.7909 (prev. 6.8435)

The PBoC's decision to set the USD/CNY mid-point significantly lower than the previous fix suggests a more accommodative stance, likely aimed at supporting China's economic activity.

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PBoC is expected to set USD/CNY mid-point at 6.7909 (prev. 6.8435)

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This could lead to a weaker CNY, impacting cross-asset flows, including commodities and broader FX markets, as traders reassess their expectations for monetary policy and potential interventions.

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