# PBOC Joins Forces With Powell to Hit the Brakes on Dollar Rally - Bloomberg

> The PBOC said banks would resume using the counter-cyclical factor in calculating the yuan's daily reference rate, restraining the currency's decline against the dollar. Roughly three hours later, Fed Chairman Jerome Powell said he saw little sign of inflation accelerating above the 2 percent target.

- Date: 2018-08-24 · published 2018-08-24T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/10038-pboc-joins-forces-with-powell-to-hit-the-brakes-on-dollar-rally-bloomberg
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Both moves weakened the dollar and supported the yuan, which eases pressure on Chinese import demand and currency-linked commodity pricing. A softer dollar generally lifts dollar-denominated grain and meal prices.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2018-08-24 | 1 | -1.0% | -3.5 | On 2018-08-24 the PBOC reinstated the counter-cyclical factor in the yuan fixing, which curbed depreciation and triggered a sharp yuan rebound (CNY per USD fell), while Powell's dovish remarks weakened the dollar. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-06-29 | [Dollar's Battle Gets Harder With Fed No Longer Only Hawk in Town - Bloomberg](https://feedsoft.ai/events/70699-dollar-s-battle-gets-harder-with-fed-no-longer-only-hawk-in-town-bloomberg.md) | +0.3% | -1.7% |
| DXY | 2024-08-23 | [Pound Rises to Strongest in Over Two Years Against the US Dollar - Bloomberg](https://feedsoft.ai/events/29067-pound-rises-to-strongest-in-over-two-years-against-the-us-dollar-bloomberg.md) | -0.1% | -0.8% |
| DXY | 2018-09-20 | [Dollar Traders See the Fed's Next Rate Hike as a Big Sell Signal - Bloomberg](https://feedsoft.ai/events/63241-dollar-traders-see-the-fed-s-next-rate-hike-as-a-big-sell-signal-bloomberg.md) | +0.0% | +1.0% |
| DXY | 2020-09-11 | [Lower-for-longer rates from the Fed point to a weaker-for-longer dollar](https://feedsoft.ai/events/51287-lower-for-longer-rates-from-the-fed-point-to-a-weaker-for-longer-dollar.md) | -0.4% | +0.2% |
| DXY | 2021-08-27 | [Dollar slips after Powell embraces tapering, holds on rate hikes](https://feedsoft.ai/events/45477-dollar-slips-after-powell-embraces-tapering-holds-on-rate-hikes.md) | -0.9% | -0.0% |
| USDCNY | 2021-09-30 | [Dollar (USD) Rally Challenges China Recovery With Yuan (RMB) Gains - Bloomberg](https://feedsoft.ai/events/45272-dollar-usd-rally-challenges-china-recovery-with-yuan-rmb-gains-bloomberg.md) | -0.4% | -1.2% |
| USDCNY | 2021-12-31 | [Chinese Yuan Reaches 3-Year High With PBOC Reluctant for Stronger CNY in 2022 - Bloomberg](https://feedsoft.ai/events/43814-chinese-yuan-reaches-3-year-high-with-pboc-reluctant-for-stronger-cny-in-2022.md) | +0.1% | -0.2% |
| USDCNY | 2020-09-01 | [Yuan’s Jump to One-Year High Tests China’s Tolerance for Gains - Bloomberg](https://feedsoft.ai/events/51313-yuan-s-jump-to-one-year-high-tests-china-s-tolerance-for-gains-bloomberg.md) | -0.1% | -0.5% |

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2018-08-24/pboc-joins-forces-with-powell-to-hit-the-brakes-on-dollar-rally

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.