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The yuan strengthened sharply on Monday, with the PBOC's USD/CNY central parity rate posting its biggest daily gain since 2005. The rally followed a broad dollar retreat as US inflation eased and expectations grew that the Fed would slow rate hikes.
A stronger yuan lowers the dollar cost of Chinese imports, supporting import demand for soybeans and feed ingredients at the margin.
chinadaily.com.cnSHI JING in ShanghaiNov 14, 2022After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% over 20.
After 1,637 past bearish macro events, US Dollar (Broad) moved a median -0.2% over 5 sessions (39% higher; middle half -0.6% to +0.3%), and -0.2% over 20.
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.
