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The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

The previous close was 7.1360

Today’s mid rate is the strongest for CNY since November 6 last year.

In Open market operations (OMOs) the PBOC inject 137.8bn yuan at an unchanged rate of 1.4%

• net injection is of that amount, 137.8bn yuan

Note that the PBoC also injected 116bn yuan via 7-day RRs at 1.4% over the weekend. On Saturday.

This article was written by Eamonn Sheridan at investinglive.com.

On Monday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1007 compared to Friday’s fix of 7.1048 and 7.1210 Reuters estimate.

EUR/USD steadies after registering nearly 0.5% gains in the previous session, trading around 1.1620 during the Asian hours on Monday.

The General Administration of Customs will publish its data for August on Monday at 03.00 GMT. Trade balance is expected to narrow to $98.96B in September, compared to $102.33B in the previous reading. Exports are expected to climb by 6.0%, while Imports are projected to rise by 1.5%. 

Back on Friday we had the early news on the efforts of the US Bureau of Labor Statistics (BLS) to publish the latest CPI report:

• Big news – US plans to release the September CPI report data despite government shut down
• US BLS recalls staff to finish CPI report, prioritising Social Security and Fed timelines
• Former BLS commissioner Erica Groshen said the data collection for September CPI had already been completed before the shutdown began on October 1, allowing staff to focus on analysis and publication. Economists noted the report will also provide the Federal Reserve with critical input ahead of its next policy meeting later this month, October 28-29.

Over the weekend we got the data for the release:

• The BLS will release the September CPI report on Friday, October 24 at 8:30 AM ET
• compared to the original publication date of October 15
• no other releases will be rescheduled or produced until the resumption of regular government services, and the recalled staff have only been tasked with preparing the September CPI

This article was written by Eamonn Sheridan at investinglive.com.

The USD/CAD pair trades with a negative bias for the second straight day on Monday, though it lacks follow-through selling and holds above the 200-day Simple Moving Average (SMA) through the Asian session.

Shanghai Securities News reported on Monday that several major Chinese brokerage firms believe the momentum in China’s equity market remains intact, despite external pressures from global economic uncertainty and geopolitical risks.

Analysts cited by the paper said the A-share market’s medium-term outlook remains resilient, supported by improving corporate earnings, targeted policy support, and signs of stabilisation in key sectors such as technology and consumption.

While acknowledging ongoing external shocks — including trade frictions and fluctuating overseas capital flows — the brokerages argued there is no need for excessive pessimism, noting that domestic fundamentals and liquidity conditions continue to underpin the market.

The report reflects an effort to shore up investor confidence after recent market volatility, with several strategists emphasising that China’s structural reform agenda and easing monetary stance provide a steady foundation for medium-term growth.

This article was written by Eamonn Sheridan at investinglive.com.

People’s Bank of China USD/CNY reference rate is due around 0115 GMT.

The People’s Bank of China (PBOC), China’s central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%.

How the process works:

• Daily midpoint setting: Each morning, the PBOC sets a midpoint for the yuan against a basket of currencies, primarily the US dollar. The central bank takes into account factors such as market supply and demand, economic indicators, and international currency market fluctuations. The midpoint serves as a reference point for that day’s trading.
• The trading band: The PBOC allows the yuan to move within a specified range around the midpoint. The trading band is set at +/- 2%, meaning the yuan could appreciate or depreciate by a maximum of 2% from the midpoint during a single trading day. This range is subject to change by the PBOC based on economic conditions and policy objectives.
• Intervention: If the yuan’s value approaches the limit of the trading band or experiences excessive volatility, the PBOC may intervene in the foreign exchange market by buying or selling the yuan to stabilize its value. This helps maintain a controlled and gradual adjustment of the currency’s value.

This article was written by Eamonn Sheridan at investinglive.com.

Gold price (XAU/USD) extends the rally to around $4,040 during the early Asian session on Monday. The escalating trade tensions between the United States (US) and China provide some support to the precious metal.

Asia-Pacific markets were set to fall Monday, as investors kept an eye out for any fallout from the renewed China-U.S. trade tensions.