PBoC injected CNY 183B (USD 25.28B) of liquidity through seven-day reverse repurchases agreements in open market operations today. The China’s central bank said it’s for “maintaining steady year-end liquidity level”. Through the week, PBoC injected a net CNY 975B, the largest amount since January 2019.
USD/CNH has been steadily in range since hitting 6.9296 earlier this month. Upside is so far capped by head and shoulder top neck line, and below 55 day EMA. Further decline remains in favor for now. As a correction to the up trend from 6.3057 to 7.3745, deeper fall would be seen to 6.8372 resistance turned support before bottoming.
