# China’s yuan slides on weaker guidance; Powell testimony in focus - The Pound Hub

> The yuan slipped against the dollar after the PBOC set a weaker-than-expected daily fixing following three sessions of firmer fixes, while traders awaited Fed Chair Powell's congressional testimony. The spot yuan has weakened 2.3% this year, pressured by a property slump, weak consumption and capital outflows.

- Date: 2024-07-09 · published 2024-07-09T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/12302-china-s-yuan-slides-on-weaker-guidance-powell-testimony-in-focus-the-pound-hub
- 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 weaker yuan raises the local-currency cost of Chinese imports of US and Brazilian feed ingredients, a modest drag on demand. Powell's remarks on rate cuts could move the dollar index and therefore broader grain price direction.

## Read by commodity

- DXY: neutral
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2024-01-04 | [China’s yuan eases against the dollar on widening yield differential - The Pound Hub](https://feedsoft.ai/events/11843-china-s-yuan-eases-against-the-dollar-on-widening-yield-differential-the-pound.md) | +0.3% | +0.4% |
| USDCNY | 2024-07-22 | [China stocks drop after party meeting, yuan falls on rate cuts - The Pound Hub](https://feedsoft.ai/events/7517-china-stocks-drop-after-party-meeting-yuan-falls-on-rate-cuts-the-pound-hub.md) | -0.3% | -1.4% |
| USDCNY | 2016-11-24 | [Pace of China’s sale of US Treasurys in focus as the yuan plumbs new lows](https://feedsoft.ai/events/74063-pace-of-china-s-sale-of-us-treasurys-in-focus-as-the-yuan-plumbs-new-lows.md) | -0.5% | +0.4% |
| USDCNY | 2017-10-26 | [China's yuan weakens on US dollar strength, set for 2nd weekly loss - The Business Times](https://feedsoft.ai/events/68677-china-s-yuan-weakens-on-us-dollar-strength-set-for-2nd-weekly-loss-the-business.md) | -0.5% | -0.5% |
| USDCNY | 2020-02-20 | [Breaking: The People's Bank of China cut interest rates: AUD and Yuan sliding — Octa](https://feedsoft.ai/events/54798-breaking-the-people-s-bank-of-china-cut-interest-rates-aud-and-yuan-sliding-octa.md) | +0.3% | +0.7% |
| DXY | 2021-01-28 | [China's yuan inches up as tight liquidity pushes interbank rates higher \| Financial Post](https://feedsoft.ai/events/49361-china-s-yuan-inches-up-as-tight-liquidity-pushes-interbank-rates-higher.md) | +0.2% | -0.1% |
| DXY | 2022-08-26 | [fed: Dollar volatile after Fed's Powell comments on inflation - The Economic Times](https://feedsoft.ai/events/39943-fed-dollar-volatile-after-fed-s-powell-comments-on-inflation-the-economic-times.md) | +1.1% | +3.4% |
| DXY | 2021-01-26 | [S.African rand weakens on stimulus nerves; IMF forecast lifts lira \| Financial Post](https://feedsoft.ai/events/49432-s-african-rand-weakens-on-stimulus-nerves-imf-forecast-lifts-lira-financial-post.md) | +0.5% | +0.0% |

## Sources

- thepoundhub.com: https://thepoundhub.com/china-currency/chinas-yuan-slides-on-weaker-guidance-powell-testimony-in-focus/

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