# USD/CNH at 2020 high as China re-opens with weak data, rate cuts amid coronavirus - Forex Crunch

> USD/CNH reached a 2020 high near 7.01 in Asian trade as Chinese markets resumed after the Lunar New Year. Weaker-than-expected Caixin manufacturing PMI, industrial profit declines of 6.3%, and reverse repo cuts added pressure amid coronavirus fears.

- Date: 2020-02-03 · published 2020-02-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/5139-usd-cnh-at-2020-high-as-china-re-opens-with-weak-data-rate-cuts-amid
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Weak Chinese manufacturing data and a weaker yuan signal softer Chinese demand and higher dollar costs for imported feed inputs. The data point to slower economic activity ahead.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2020-02-03 | 1 | +1.5% | 7.3 | Yuan reopening after Lunar New Year with weak PMI and profit data amid coronavirus fears drove USD/CNH to 2020 highs, directly explaining the 1.51% CNY depreciation. |
| USDCNY | 2020-02-03 | 5 | +1.5% | 2.8 | USD/CNH hit a 2020 high as China reopened with weak PMI and profit data, rate cuts and coronavirus fears, which directly drove the yuan's sharp weakening on Feb 3. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2021-01-29 | [USD/CNY: Yuan drops despite surging Chinese overnight repo rate - Forex Crunch](https://feedsoft.ai/events/49364-usd-cny-yuan-drops-despite-surging-chinese-overnight-repo-rate-forex-crunch.md) | +0.3% | +0.4% |
| USDCNY | 2018-06-27 | [USD/CNY rises to highest since December 19 - Forex Crunch](https://feedsoft.ai/events/8532-usd-cny-rises-to-highest-since-december-19-forex-crunch.md) | +0.9% | +2.9% |
| USDCNY | 2020-01-30 | [What the coronavirus outbreak means for the Chinese yuan - MarketWatch](https://feedsoft.ai/events/55308-what-the-coronavirus-outbreak-means-for-the-chinese-yuan-marketwatch.md) | +0.8% | +1.3% |
| USDCNY | 2018-06-28 | [China: The yuan breaks out - Westpac - Forex Crunch](https://feedsoft.ai/events/8534-china-the-yuan-breaks-out-westpac-forex-crunch.md) | +0.5% | +2.8% |
| USDCNY | 2020-02-03 | [USD/CNY remains in 2-month tops near 7.02 ahead of ISM - Forex Crunch](https://feedsoft.ai/events/5137-usd-cny-remains-in-2-month-tops-near-7-02-ahead-of-ism-forex-crunch.md) | +1.2% | +0.6% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/02/03/usd-cnh-at-2020-high-as-china-re-opens-with-weak-data-rate-cuts-amid-coronavirus/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.