PBoC sets USD/CNY mid-point at 7.0108 vs exp. 6.9849 (Prev. 7.0128); strongest CNY fix since September 30th 2024

The PBoC’s setting of the USD/CNY mid-point at 7.0108, significantly stronger than expectations, indicates a potential shift towards supporting the yuan, especially as it represents the strongest fix since September 2024.

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PBoC sets USD/CNY mid-point at 7.0108 vs exp. 6.9849 (Prev. 7.0128); strongest CNY fix since September 30th 2024

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Context

This move may signal a more hawkish stance from the PBoC in managing currency stability, which could impact forex flows and risk sentiment across Asia. Traders should watch for implications on rate paths and broader market reactions.

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