- PBoC expected to set the Yuan midpoint at 7.0828.
- China cut its new one-year benchmark lending rate for the second month in a row on Friday.
The People’s Bank of China is expected to set the Yuan midpoint at 7.0828 against the dollar according to a Reuters estimate.
The PBoC is in viewpoint at the moment, following China cutting its new one-year benchmark lending rate for the second month in a row on Friday, a step by the central bank to try to wrestle down borrowing costs and support the economy as the Sino-U.S. trade war drags on.
Chinese delegates cut a meeting short last week and US President Trump was also speaking up and signalling to markets that there is little sense of urgency in the US administration either which sent a risk-off tone verberating through financial and commodity markets on Friday. FX is on tenterhooks and currencies such as the Aussie will take the brunt of weakness in the Yuan and trade talk traction.
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