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Danske Bank's chief analyst expects USD/CNY to keep grinding lower, with the pair near 6.63, its strongest yuan level since November 2016. The dollar index has fallen back to early-2015 levels, and recent data has failed to lift the greenback.
The analyst sees the yuan weakening against the dollar later as growth softens around the autumn party congress.
A weaker dollar and firmer yuan lower the local-currency cost of dollar-priced feed imports for China, which can support US soybean and corn demand sentiment. The move is mainly dollar-driven, so it is a modest factor for feed ingredient prices.
octaafrica.netAug 29, 2017After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), 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.
