◂ Event Timeline

Jan 6, 2022MACROChina

China's yuan eases on hawkish Fed, warning of depreciation pressure

China's yuan weakened against the dollar on January 6, 2022, pressured by capital outflow worries after the Federal Reserve signaled faster monetary tightening than markets expected. The onshore yuan traded around 6.374 per dollar at midday, about 95 pips weaker than the prior close.

WHY IT MATTERS

A weaker yuan makes Chinese buyers pay more in dollars for imported feed grains and meal, which can dampen import demand and pressure US and Brazilian export prices at the margin.

AFFECTSChinese Yuan (CNY per USD)▲

SOURCE
reuters.comJan 6, 2022

Price reaction & history

Chinese Yuan (CNY per USD)▲bullishSO FAR1d +0.3%5d -0.1%20d -0.0%

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 5, 2022PBOC-backed newspaper warns of yuan depreciation pressure in 2022 | Reuters+0.0%
May 1, 2024Yuan falls out of favour with China’s exporters as fears of depreciation mount-0.3%
Feb 26, 2017China's yuan falls, but fears of US trade war may cap depreciation - The Business Times+0.5%
Mar 20, 2023China's yuan eases after reserve ratio cut; Fed decision in focus | Financial Post-0.3%
Aug 25, 2022Inflation-hit world cheers China’s falling yuan | Reuters+0.5%

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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