◂ Event Timeline

Mar 20, 2023MACROChina

China's yuan eases after reserve ratio cut; Fed decision in focus

The yuan eased against the dollar after the PBOC unexpectedly cut the reserve requirement ratio for all banks. Traders also focused on the Federal Reserve's policy meeting, where a quarter-point hike was expected.

WHY IT MATTERS

A weaker yuan following monetary easing in China can raise the local cost of dollar-denominated feed imports. Any change in import demand would be gradual.

AFFECTSChinese Yuan (CNY per USD)▲

SOURCE
financialpost.comReutersMar 20, 2023

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d -0.1%5d -0.3%20d -0.3%

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.

Jan 6, 2022China's yuan eases on hawkish Fed, warning of depreciation pressure | Reuters-0.1%
Dec 28, 2022China's yuan weakens as U.S. dollar gains on sustained inflation outlook | Financial Post-1.0%
Sep 17, 2020Yuan falls on dollar strength after Fed's upbeat economic outlook | Financial Post+0.8%
Apr 1, 2021China's yuan dips as Biden infrastructure plan lifts dollar | Financial Post-0.2%
Nov 9, 2020For investors, China's yuan is the big winner from Biden victory | Financial Post-0.4%

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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