SHANGHAI, March 6 (Reuters) - China's yuan held steady
against the U.S. dollar on Wednesday, as the central bank set a
daily midpoint guidance rate at its firmest in a month, while
investors were waiting for a press conference later in the day
for more policy clarity. 
    Prior to the market's opening, the People's Bank of China
(PBOC) set the midpoint rate, around which the yuan is allowed
to trade in a 2% band, at 7.1016 per dollar, the firmest since
Feb. 2 and 923 pips firmer than Reuters' estimate of 7.1939.
    "The 7.20 level is now seen as a big resistance level
anchored by PBOC fixings as authorities are unlikely to
entertain any wild swings in the currency this week amidst the
annual Two Sessions," said Alex Loo, macro strategist at TD
Securities. 
    Parliamentarians and political advisers gather in Beijing
every March for two parallel sets of meetings called the
Lianghui or "Two Sessions".
    The yuan has been capped below the 7.2 level against the
dollar for the past month.
    Meanwhile, investors will keep a close eye on an
economy-focused press conference at 3 p.m. in Beijing (0700
GMT), where representatives from PBOC and other regulators may
respond to media inquiries. 
    The spot yuan opened at 7.1949 per dollar and was
changing hands at 7.1991 at midday, 21 pips weaker than the
previous late session close.
    The global dollar index was steady on Wednesday, as
traders avoided making big bets ahead of congressional testimony
from Federal Reserve Chair Jerome Powell and U.S. jobs data
later this week.
    The offshore yuan was trading 128 pips weaker than
the onshore spot at 7.2119 per dollar. 


    The yuan market at 0311 GMT: 
    
    ONSHORE SPOT:
 Item               Current  Previous  Change
 PBOC midpoint      7.1016   7.1027    0.02%
                                       
 Spot yuan          7.1991   7.197     -0.03%
                                       
 Divergence from    1.37%              
 midpoint*                             
 Spot change YTD                       -1.41%
 Spot change since 2005                14.97%
 revaluation                           
 
    Key indexes:
     
 Item            Current     Previous  Change
                                       
 Thomson                               0.0
 Reuters/HKEX                          
 CNH index                             
 Dollar index    103.8       103.798   0.0
 
    
    
*Divergence of the dollar/yuan exchange rate. Negative number
indicates that spot yuan is trading stronger than the midpoint.
The People's Bank of China (PBOC) allows the exchange rate to
rise or fall 2% from official midpoint rate it sets each
morning.

    OFFSHORE CNH MARKET   
  
 Instrument            Current   Difference
                                 from onshore
 Offshore spot yuan    7.2119    -0.18%
        *                        
 Offshore              7.0078    1.34%
 non-deliverable                 
 forwards                        
               **                
 
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint,
since non-deliverable forwards are settled against the midpoint.
. 
    

 (Reporting by Shanghai Newsroom; Editing by Jamie Freed)