# USD/CNH bulls approach 7.1800 as PBoC rate cut contrasts with hawkish Fed bias: Analytics and Market news from 20 June 2023 01:51

> The PBoC cut its one-year and five-year loan prime rates by 10 basis points, matching market expectations. USD/CNH rose toward 7.1800 for a third straight day, while the Fed's hawkish bias after the US Juneteenth holiday supported the dollar.

- Date: 2023-06-20 · published 2023-06-20T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/11230-usd-cnh-bulls-approach-7-1800-as-pboc-rate-cut-contrasts-with-hawkish-fed-bias
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Lower Chinese lending rates widen the US-China rate gap, which pressures the yuan and supports USD/CNH. A weaker yuan can dampen Chinese import purchasing power for feed inputs at the margin.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2023-06-20 | 1 | +0.8% | 3.2 | The LPR cut combined with the Fed's hawkish bias drove USD/CNH higher toward 7.18, which directly explains the 1-day yuan depreciation. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2022-04-25 | [PBOC’s Wang calls for growth-boosting policy as yuan slumps to yearly lows: Analytics and Market news from 25 April 2022 04:04](https://feedsoft.ai/events/7642-pboc-s-wang-calls-for-growth-boosting-policy-as-yuan-slumps-to-yearly-lows.md) | +1.6% | +2.9% |
| USDCNY | 2020-02-03 | [USD/CNH at 2020 high as China re-opens with weak data, rate cuts amid coronavirus - Forex Crunch](https://feedsoft.ai/events/5139-usd-cnh-at-2020-high-as-china-re-opens-with-weak-data-rate-cuts-amid.md) | +1.2% | +0.6% |
| USDCNY | 2022-04-26 | [PBOC seeks to calm markets with reserve ratio cut - Asia Times](https://feedsoft.ai/events/42068-pboc-seeks-to-calm-markets-with-reserve-ratio-cut-asia-times.md) | +0.8% | +1.4% |
| USDCNY | 2023-02-27 | [Chinese yuan approaches 7 level as PBOC slashes midpoint rate By Investing.com](https://feedsoft.ai/events/37549-chinese-yuan-approaches-7-level-as-pboc-slashes-midpoint-rate-by-investing-com.md) | -0.7% | -1.3% |
| USDCNY | 2024-05-08 | [China’s yuan slips as hawkish Fed comments boost dollar - Markets - Business Recorder](https://feedsoft.ai/events/5869-china-s-yuan-slips-as-hawkish-fed-comments-boost-dollar-markets-business.md) | +0.2% | +0.4% |

## Sources

- teletrade.org: https://www.teletrade.org/analytics/market-analysis/market-news/3875409

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