Onshore yuan was seen heading into EU session testing 6.40, the strongest since 2018
The level was rejected by NA session with the spot seen above 6.405, compared to session lows of 6.3920
A Reuters note signaled state banks buying USDs at these levels
Reuters:
China’s major state-owned banks were seen buying U.S. dollars at around 6.4 yuan per dollar level on Tuesday afternoon, four sources with knowledge of the matter said, in a move viewed as an effort to curb fast yuan appreciation to breach the key level.
One of the sources said the state-run bank quickly stepped in to soothe the fast yuan rally in the onshore market after its offshore counterpart rose past the key level.“State banks jumped in to set a floor for the yuan (USD/CNY),” said another source.
China’s major state-run banks often act as agents for the People’s Bank of China (PBOC) in currency markets, but they also trade on their own behalf.
https://www.reuters.com/article/china-yuan-idUSL2N2NC0G8
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