PBoC is expected to set USD/CNY mid-point at 6.9153 (prev. 6.9438)

PBoC is expected to set USD/CNY mid-point at 6.9153 (prev. 6.9438)

The PBoC's shift in the expected USD/CNY mid-point to 6.9153 from the previous 6.9438 indicates a more supportive stance towards the yuan. This adjustment is likely to be perceived as a response to strengthening economic conditions or a desire to curb further depreciation, which could have implications for USD flows and broader market sentiment in Asia. Traders should watch for potential ripple effects on other currencies and fixed-income assets as the market digests this guidance.