PBoC is expected to set USD/CNY mid-point at 6.9730 (prev. 7.0230)

PBoC is expected to set USD/CNY mid-point at 6.9730 (prev. 7.0230)

The PBoC's decision to set the USD/CNY mid-point at 6.9730, down from the previous 7.0230, signals a notable adjustment in the currency's reference rate, likely reflecting a stronger yuan amidst ongoing market pressures. This move could influence both trade balances and risk sentiment in the Asian session, potentially affecting flows into other currencies and fixed income assets as investors recalibrate expectations around currency stability and Chinese economic performance.