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The yuan strengthened on August 6, 2019, after the People's Bank of China set its daily fix firmer than expected, below the 7 level. The central bank also sold yuan-denominated bills in Hong Kong to curb short selling.
The stabilization eased safe-haven demand and reduced near-term currency-driven pressure on dollar-denominated commodity prices. Trade tensions remain unresolved, so the relief is likely limited.
cnbc.comReutersAug 6, 2019After 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.
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.
The firmer-than-expected fix and PBOC bill sales in Hong Kong tempered the depreciation on Aug 6, which shaped the net 5-day move.
