Yuan remains flat ahead of US non-farm payrolls on Friday
PBOC sets yuan’s mid-point rate against the US dollar at 6.6812, 44 basis points or 0.066 per cent stronger than Monday’s fix
The Chinese yuan traded flat on Tuesday morning, as investors continue to seek out clues as to likely US rate movements, as well as await details on the all-important US non-farm payrolls report out this week.
Onshore yuan in Shanghai remained unchanged at 6.6772 to the US dollar at 10.30 am, while offshore yuan in Hong Kong traded at 6.6881 to the US dollar at 10.30 am, 0.01 per cent, or 9 points stronger than on Monday.
The People’s Bank of China on Tuesday set the yuan’s mid-point rate against the US dollar at 6.6812, 44 basis points or 0.066 per cent stronger than Monday’s fix.
Traders are allowed to trade up to 2 per cent either side of the reference rate for the day.
US Federal Reserve chairman Janet Yellen did not indicate when the Fed might raise rates in a much-anticipated speech last Friday night. But her comments did reinforce the view that a rise could come later this year. The Fed has policy meetings scheduled in September, November and December.
The US non-farm payrolls – a monthly report from the US Bureau of Labour Statistics intended to represent the total number of paid US workers – announced this Friday, will be a market focus.
“Without question, ‘Jobs Day’ is always a monthly highlight,” said Stephen Innes, senior trader at Oanda.
“Friday’s jobs data will offer more information about the probability of a hike in September, than anything else.”
Investor odds of a lift-off are hovering near 70 per cent for December, Innes added.
In other currency trading, the British pound strengthened for four days in a row, trading at US$1.3075, up 0.2 per cent or 26 points on Tuesday morning, while the euro traded 0.17 per cent higher to US$1.1075. The Japanese Yen continued to weaken for the fifth day, down 0.24 per cent to trade at 102.12 on Tuesday morning.