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The yuan's central parity rate rose to a 27-month high against the dollar on Thursday, after advancing for a fifth straight session. The US dollar index touched a new three-year low of 89.29 after Treasury Secretary Mnuchin said a weaker dollar was welcome.
A stronger yuan and weaker dollar make dollar-priced imports cheaper for China and tend to support US commodity prices. Policy comments from US officials are a key driver of the move.
ecns.cnJan 25, 2018After 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.
On 2018-01-25 the PBOC midpoint hit a 27-month high for a fifth straight session as the dollar index fell to a three-year low after Mnuchin welcomed a weaker dollar, directly driving the CNY per USD decline.
