◂ Event Timeline

Dec 11, 2024MACROChina

Weaker Chinese yuan talk raises spectre of FX race to the bottom

The yuan dipped about 0.3% to as far as 7.2803 per dollar after a Reuters report that Chinese authorities were considering a weaker currency. The Australian dollar, sensitive to yuan moves, touched a one-year low.

WHY IT MATTERS

Competitive currency devaluation fears across Asia could weigh on commodity exporters' currencies and make China's import demand for farm goods less certain.

AFFECTSChinese Yuan (CNY per USD)▲Australian Dollar (USD per AUD)▼

SOURCE
reuters.comTom WestbrookDec 11, 2024

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d +0.1%5d +0.5%20d +1.1%

After 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.

Oct 31, 2018Why the Chinese yuan is falling-0.7%
May 28, 2020The Chinese yuan could weaken to 7.40 per dollar amid US-China tensions-0.8%
Jun 17, 2021China’s PBOC Braces for Weaker Yuan as Fed Plans Tapering - Bloomberg+1.2%
Aug 25, 2017Chinese yuan weakens to 6.6579 against USD Friday - Chinadaily.com.cn-1.1%
May 31, 2019What happens if the Chinese yuan breaches the 7 to the US dollar+0.1%

Australian Dollar (USD per AUD)▼bearish

Not enough comparable past events yet for a historical read.

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.

Chinese Yuan (CNY per USD) USDCNY · GP ▸

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Australian Dollar (USD per AUD) AUDUSD · GP ▸

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