# Stronger Yuan fixings on China downgrade is unlikely to have much effect- ANZ — Octa

> ANZ analysts said that stronger-than-expected yuan fixings after Moody's downgrade of China are unlikely to have much lasting effect. They noted that the onshore spot rate has traded weaker than the fix, a sign of strong dollar demand.

- Date: 2017-05-24 · published 2017-05-24T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/10567-stronger-yuan-fixings-on-china-downgrade-is-unlikely-to-have-much-effect-anz
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Persistent onshore dollar demand means the authorities may need to intervene in FX markets, which affects the currency backdrop for China's commodity imports. The price impact on feed commodities is minor.

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2017-05-25 | 1 | -0.3% | -3.4 | Stronger-than-expected yuan fixings after the Moody's downgrade signaled official support for the currency, which contributed to the yuan strengthening, though ANZ doubted the effect would last. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-03-28 | [China sets yuan at much stronger fixing than markets expected](https://feedsoft.ai/events/31439-china-sets-yuan-at-much-stronger-fixing-than-markets-expected.md) | +0.1% | +0.3% |
| USDCNY | 2024-09-25 | [China’s march to strong yuan is long and perilous](https://feedsoft.ai/events/28557-china-s-march-to-strong-yuan-is-long-and-perilous.md) | -0.2% | +1.3% |
| USDCNY | 2018-01-23 | [China’s yuan edges up on stronger fixing, vulnerable dollar \| Business News - The Indian Express](https://feedsoft.ai/events/11862-china-s-yuan-edges-up-on-stronger-fixing-vulnerable-dollar-business-news-the.md) | -1.1% | -1.1% |
| USDCNY | 2017-07-30 | [China's yuan firms on stronger fixing, set for the 3rd winning month - The Business Times](https://feedsoft.ai/events/70191-china-s-yuan-firms-on-stronger-fixing-set-for-the-3rd-winning-month-the.md) | -0.1% | -1.3% |
| USDCNY | 2023-12-11 | [Yuan and equity markets fall on Moody’s Ratings downgrade](https://feedsoft.ai/events/6457-yuan-and-equity-markets-fall-on-moody-s-ratings-downgrade.md) | -0.7% | +0.0% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/445509/

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