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The Chinese yuan weakened to its lowest level against the dollar since April on Tuesday, with the onshore rate down more than 200 pips. Analysts linked the move to rising risk aversion, a firmer U.S. dollar index above 93 and falling U.S. 10-year yields.
Dollar strength and yuan weakness raise the cost of dollar-denominated commodity imports for China. The effect on feed prices is indirect and depends on whether the move extends.
en.imsilkroad.comJul 28, 2021After 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.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
