# Chinese yuan hits eight-month low with missed inflation data and US dollar rebound - VT Markets

> 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.

- Date: 2024-07-10 · published 2024-07-10T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12298-chinese-yuan-hits-eight-month-low-with-missed-inflation-data-and-us-dollar
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲
- SOY: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2024-07-11 | 1 | -0.3% | -3.0 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-07-27 | [Chinese yuan hits eight-month low with missed inflation data and US dollar rebound \| FX Blue](https://feedsoft.ai/events/9350-chinese-yuan-hits-eight-month-low-with-missed-inflation-data-and-us-dollar.md) | -1.2% | -1.7% |
| USDCNY | 2022-06-13 | [China’s yuan slips to 2-week low as dollar jumps on inflation data - Markets - Business Recorder](https://feedsoft.ai/events/41171-china-s-yuan-slips-to-2-week-low-as-dollar-jumps-on-inflation-data-markets.md) | +0.1% | +0.2% |
| USDCNY | 2021-01-11 | [China's yuan eases to 1-week low to reflect dollar rebound - Markets - Business Recorder](https://feedsoft.ai/events/49365-china-s-yuan-eases-to-1-week-low-to-reflect-dollar-rebound-markets-business.md) | +0.1% | -0.6% |
| USDCNY | 2020-09-24 | [SA Rand Follows Chinese Yuan, Euro Lower as U.S. Dollar Rebound Continues \| Investing.com ZA](https://feedsoft.ai/events/51396-sa-rand-follows-chinese-yuan-euro-lower-as-u-s-dollar-rebound-continues.md) | -0.3% | -1.9% |
| USDCNY | 2024-07-24 | [Chinese yuan hits eight-month low as commodities currencies continue slide](https://feedsoft.ai/events/7522-chinese-yuan-hits-eight-month-low-as-commodities-currencies-continue-slide.md) | -0.3% | -2.0% |
| SOY | 2024-07-27 | [Chinese yuan hits eight-month low with missed inflation data and US dollar rebound \| FX Blue](https://feedsoft.ai/events/9350-chinese-yuan-hits-eight-month-low-with-missed-inflation-data-and-us-dollar.md) | -4.5% | -11.6% |
| SOY | 2024-05-01 | [US dollar modestly higher as sticky inflation persists, yen hits 34-year low](https://feedsoft.ai/events/12558-us-dollar-modestly-higher-as-sticky-inflation-persists-yen-hits-34-year-low.md) | +7.6% | +6.0% |
| SOY | 2024-05-29 | [Chinese yuan falls to six-month low on dollar strength - Nikkei Asia](https://feedsoft.ai/events/30488-chinese-yuan-falls-to-six-month-low-on-dollar-strength-nikkei-asia.md) | -4.1% | -5.4% |

## Sources

- vtmarkets.com: https://www.vtmarkets.com/analysis/chinese-yuan-hits-eight-month-low-with-missed-inflation-data-and-us-dollar-rebound/

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