Loading…
The Chinese yuan slid to near eight-month lows against the US dollar after June consumer price data missed expectations and producer prices continued to deflate. The PBOC set its daily midpoint at 7.1342, its weakest since November 2023, while the dollar rebounded after Fed Chair Powell suggested rate cuts might not come as soon as markets hoped.
Weak yuan and firm dollar make Chinese feed imports from the US and Brazil more expensive in local currency, which can dampen Chinese demand for soybeans, meal and corn. Controlled yuan weakness signals soft domestic demand, a modestly bearish backdrop for Chinese-linked feed demand.
vtmarkets.comanakinJul 10, 2024After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
Weak June CPI/PPI and a dollar rebound pushed the yuan to eight-month lows around 7/10, with the PBOC's weakest fixing since November 2023 feeding into the 7/11 CNY move.
