PBOC Sets Yuan Midpoint at 6.7351, 60 Pips Stronger

The fix landed weaker than both the prior onshore close and the overnight print, so the daily guidance is pulling the official reference rate in the opposite direction from where the market last traded. That gap matters less for its size than for the signal it sends about tolerance for yuan appreciation pressure, particularly with the offshore-referenced overnight level sitting well away from the midpoint. Whether the spot rate converges toward the fix or the fix drifts toward spot is the open question.