# USD/CNY slumps to 2-month lows on USD selling — Octa

> The yuan rose to two-month highs against the dollar, with USD/CNY dropping to 6.8687 before recovering to about 6.8735. Traders attributed the move to major state-owned banks selling dollars in the onshore market.

- Date: 2017-05-25 · published 2017-05-25T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10565-usd-cny-slumps-to-2-month-lows-on-usd-selling-octa
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

State dollar sales keep the yuan firm, which can make Chinese imports of feed ingredients priced in dollars slightly cheaper for domestic buyers. The effect on feed prices is small and mainly a currency signal.

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-05-25 | 1 | -0.3% | -3.4 | On 2017-05-25 USD/CNY fell to 6.8687, a two-month low, as state-owned banks sold dollars onshore, which directly explains the CNY-per-USD drop of 0.31%. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-04-02 | [USD/CNY: Expected to reach 7.15 on a three-month horizon – Nordea — Octa](https://feedsoft.ai/events/53881-usd-cny-expected-to-reach-7-15-on-a-three-month-horizon-nordea-octa.md) | -0.5% | -0.3% |
| USDCNY | 2016-06-23 | [USDCNY likely to continue heading higher – SocGen — Octa](https://feedsoft.ai/events/10885-usdcny-likely-to-continue-heading-higher-socgen-octa.md) | +0.9% | +1.5% |
| USDCNY | 2020-02-03 | [USD/CNY remains in 2-month tops near 7.02 ahead of ISM - Forex Crunch](https://feedsoft.ai/events/5137-usd-cny-remains-in-2-month-tops-near-7-02-ahead-of-ism-forex-crunch.md) | +1.2% | +0.6% |
| USDCNY | 2023-06-21 | [Yuan (CNY USD) Drops to Key 7.2 Level on Slow Stimulus, PBOC Greenlight - Bloomberg](https://feedsoft.ai/events/11231-yuan-cny-usd-drops-to-key-7-2-level-on-slow-stimulus-pboc-greenlight-bloomberg.md) | +0.5% | +0.6% |
| USDCNY | 2023-02-28 | [USD/CNY: Yuan could see a modest appreciation in the coming quarters – Commerzbank — Octa](https://feedsoft.ai/events/37553-usd-cny-yuan-could-see-a-modest-appreciation-in-the-coming-quarters-commerzbank.md) | -0.2% | -0.9% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/446048/

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