# 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.

- Date: 2024-12-11 · published 2024-12-11T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/27169-weaker-chinese-yuan-talk-raises-spectre-of-fx-race-to-the-bottom
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## 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.

## Read by commodity

- AUDUSD: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-10-31 | [Why the Chinese yuan is falling](https://feedsoft.ai/events/62761-why-the-chinese-yuan-is-falling.md) | -0.7% | -0.4% |
| USDCNY | 2020-05-28 | [The Chinese yuan could weaken to 7.40 per dollar amid US-China tensions](https://feedsoft.ai/events/53379-the-chinese-yuan-could-weaken-to-7-40-per-dollar-amid-us-china-tensions.md) | -0.8% | -1.3% |
| USDCNY | 2021-06-17 | [China’s PBOC Braces for Weaker Yuan as Fed Plans Tapering - Bloomberg](https://feedsoft.ai/events/7116-china-s-pboc-braces-for-weaker-yuan-as-fed-plans-tapering-bloomberg.md) | +1.2% | +1.0% |
| USDCNY | 2017-08-25 | [Chinese yuan weakens to 6.6579 against USD Friday - Chinadaily.com.cn](https://feedsoft.ai/events/10858-chinese-yuan-weakens-to-6-6579-against-usd-friday-chinadaily-com-cn.md) | -1.1% | -1.1% |
| USDCNY | 2019-05-31 | [What happens if the Chinese yuan breaches the 7 to the US dollar](https://feedsoft.ai/events/59276-what-happens-if-the-chinese-yuan-breaches-the-7-to-the-us-dollar.md) | +0.1% | -0.4% |

## Sources

- reuters.com: https://www.reuters.com/markets/asia/weaker-chinese-yuan-talk-raises-spectre-fx-race-bottom-2024-12-11/

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