"USD/CNH: Extends recovery gains beyond 7.1050 after PBOC rate cut"

Following up on China Eases: "China's central bank unexpectedly cuts reverse repo rates by 20 bp to support economy"

From FX Street:

• USD/CNH takes further measures after China’s central bank took steps to combat the coronavirus (COVID-19).
• PBOC cuts seven-day reverse repo rate, Moody’s cited weakness of China’s shadow banking industry.
• China’s Commerce Ministry, President Xi remain optimistic.

USD/CNH remains on the front foot around 7.1080 after the People’s Bank of China (PBOC) announced a rate cut on early Monday. Earlier, comments from China’s Commerce Ministry and President Xi Jin Ping kept the normal optimistic tone whereas Moody’s cited further weakness of the domestic shadow banking industry.

Read: China cuts interest rate, injects $7 billion into banking system

In its yet another move to fight the pandemic, China’s PBOC announced 20 basis points (bps) of a rate cut to its seven-day reverse repo. With this, the Chinese central bank’s benchmark interest rate currently stands at 2.2%....MORE