# Yuan starts 2021 with brisk gains as traders clear key hurdles | Financial Post

> The yuan rose nearly 1% against the dollar on the first trading day of 2021, its biggest daily gain in about three months, and broke a key technical level. The onshore yuan gained 6.7% in 2020, its first annual rise in three years, supported by a weaker dollar, yield gaps and China's coronavirus containment.

- Date: 2021-01-04 · published 2021-01-04T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12070-yuan-starts-2021-with-brisk-gains-as-traders-clear-key-hurdles-financial-post
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer yuan on a weaker dollar supports Chinese import purchasing power for commodities priced in dollars. The move is a currency story with limited direct effect on feed prices.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2021-01-04 | 1 | -1.0% | -3.1 | Reports the yuan's nearly 1% gain on the first trading day of 2021, the very move in question, driven by a weaker dollar, yield gaps and China's COVID containment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-12-02 | [Yuan ends at 2-week high; Biden comments on trade deal cap gains \| Financial Post](https://feedsoft.ai/events/49868-yuan-ends-at-2-week-high-biden-comments-on-trade-deal-cap-gains-financial-post.md) | -0.6% | -0.7% |
| USDCNY | 2021-04-22 | [China's yuan nears six-week high as U.S. yields ease \| Financial Post](https://feedsoft.ai/events/47810-china-s-yuan-nears-six-week-high-as-u-s-yields-ease-financial-post.md) | -0.2% | -0.9% |
| USDCNY | 2019-11-06 | [China sets yuan midpoint at three-month high \| Financial Post](https://feedsoft.ai/events/56292-china-sets-yuan-midpoint-at-three-month-high-financial-post.md) | +0.2% | +0.5% |
| USDCNY | 2022-06-29 | [China's yuan firms as Beijing eases quarantine rules \| Financial Post](https://feedsoft.ai/events/41167-china-s-yuan-firms-as-beijing-eases-quarantine-rules-financial-post.md) | 0.0% | +0.7% |
| USDCNY | 2022-12-20 | [China's yuan edges up as unchanged key lending rates offer no surprise \| Financial Post](https://feedsoft.ai/events/38450-china-s-yuan-edges-up-as-unchanged-key-lending-rates-offer-no-surprise.md) | -0.2% | -2.9% |
| DXY | 2021-06-01 | [Dollar steadies, yuan slips after central bank moves to limit gains \| Financial Post](https://feedsoft.ai/events/46819-dollar-steadies-yuan-slips-after-central-bank-moves-to-limit-gains-financial.md) | -0.2% | +1.1% |
| DXY | 2021-04-22 | [China's yuan nears six-week high as U.S. yields ease \| Financial Post](https://feedsoft.ai/events/47810-china-s-yuan-nears-six-week-high-as-u-s-yields-ease-financial-post.md) | -0.3% | -1.2% |
| DXY | 2020-11-17 | [Sterling edges higher as traders focus on drawn-out Brexit talks \| Financial Post](https://feedsoft.ai/events/50417-sterling-edges-higher-as-traders-focus-on-drawn-out-brexit-talks-financial-post.md) | -0.1% | -1.9% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/yuan-starts-2021-with-brisk-gains-as-traders-clear-key-hurdles

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