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The PBOC and state banks intervened in onshore and offshore yuan markets to support the currency, setting a stronger-than-expected midpoint and selling dollars. Investors expect tension ahead of Donald Trump's January 20 inauguration, given his threats of tariffs and currency-manipulator labeling for China.
Official support for the yuan reduces currency risk for Chinese buyers of US feed ingredients, but tariff threats after the inauguration could disrupt trade flows and feed demand.
cnbc.comReutersJan 4, 2017After 362 past bearish macro events, USDCNY moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
PBOC and state bank intervention on Jan 4, with dollar sales and a stronger-than-expected midpoint, set up the yuan's rebound that carried into Jan 5.
