# Yuan devaluation draws new battle lines in US-China trade war | Trade War | Al Jazeera

> The yuan's fall below seven per dollar on August 5, 2019, drew a sharp response from Trump, who accused China of currency manipulation. Analysts warned the move could start a broader currency war alongside the tariff dispute.

- Date: 2019-08-05 · published 2019-08-05T12:00:00.000Z
- Category: trade · region China · magnitude medium
- Page: https://feedsoft.ai/events/5373-yuan-devaluation-draws-new-battle-lines-in-us-china-trade-war-trade-war-al
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Currency retaliation raises uncertainty for trade flows and risk appetite, which can pressure commodity demand. The effect on grain prices depends on whether the dispute escalates into direct trade measures.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2019-08-07 | 5 | +2.6% | 3.9 | The yuan's fall below 7 and Trump's manipulation accusation raised currency-war fears, adding to depreciation pressure and volatility. |
| USDCNY | 2019-08-05 | 1 | +1.6% | 6.6 | The fall below 7 on Aug 5 and the US currency manipulation accusation show the move was part of trade-war escalation, though the accusation was mostly a reaction to it. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2019-08-05 | [China lets yuan break key 7 level for first time in decade as trade war worsens](https://feedsoft.ai/events/5368-china-lets-yuan-break-key-7-level-for-first-time-in-decade-as-trade-war-worsens.md) | +1.8% | +3.1% |
| USDCNY | 2019-08-06 | [U.S.-China Trade War Spreads From Tariffs To A Battle Over Currencies : NPR](https://feedsoft.ai/events/5374-u-s-china-trade-war-spreads-from-tariffs-to-a-battle-over-currencies-npr.md) | +0.1% | +1.9% |
| USDCNY | 2019-08-06 | [Lashing back, China lets yuan drop, halts US farm purchases \| AP News](https://feedsoft.ai/events/5371-lashing-back-china-lets-yuan-drop-halts-us-farm-purchases-ap-news.md) | +0.1% | +1.9% |
| USDCNY | 2018-06-29 | [Trade Dispute Hits China’s Yuan, Investors](https://feedsoft.ai/events/8536-trade-dispute-hits-china-s-yuan-investors.md) | +0.2% | +2.8% |
| USDCNY | 2019-05-13 | [Chinas Trade Retaliation Has USDCNH Bulls Eyeing DecadePlus Highs Near 700](https://feedsoft.ai/events/8443-chinas-trade-retaliation-has-usdcnh-bulls-eyeing-decadeplus-highs-near-700.md) | +1.4% | +1.6% |

## Sources

- aljazeera.com: https://www.aljazeera.com/economy/2019/8/5/yuan-devaluation-draws-new-battle-lines-in-us-china-trade-war

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