The People’s Bank of China (PBOC) injected CNY200 billion via one-year medium-term lending (MLF) facility on Wednesday.
The Chinese central bank kept the rate for one-year MLF operation rate unchanged at 2.85%, as widely expected. The PBOC maintained the status-quo for the fifth straight meeting.
The PBOC pumped 10 bln yuan via 7-day reverse repos at 2.10% vs. 2.10% prior.
Market reaction
USD/CNY met fresh supply on the latest PBOC operation. The spot is currently trading at 6.7410, almost unchanged on the day.
Meanwhile, the AUD/USD pair is extending the recovery once again above 0.6900, awaiting the Chinese activity numbers for fresh impetus. The pair is adding 0.68% on the day.