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The People's Bank of China set a much weaker USD/CNY midpoint fixing of 7.1668, after holding the rate near 7.11 since late September. ING reads this as Beijing allowing market forces a bigger role in the yuan and a dollar-positive development.
A weaker yuan raises the cost of dollar-priced imports for China, which can slow purchases of US soybeans, corn and meal at the margin. It also signals policy tolerance for further yuan weakness.
think.ing.comChris Turner, Frantisek Taborsky, Francesco PesoleOct 25, 2022After 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.
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.
