PBoC is expected to set USD/CNY mid-point at 6.8096 (prev. 6.8593)

The PBoC's decision to set the USD/CNY mid-point significantly lower than the previous rate suggests a hawkish stance aimed at supporting the yuan.

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PBoC is expected to set USD/CNY mid-point at 6.8096 (prev. 6.8593)

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Context

This move could impact market perceptions of the PBoC's monetary policy direction and may also influence flows into Chinese assets, potentially strengthening the yuan against a backdrop of competing currencies.

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