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China's central bank added a counter-cyclical adjustment factor to the USDCNY daily fixing calculation, with CFETS confirming the change. The yuan sold off to its lowest level since January 2017 after the move.
Commentators say the fix is becoming less transparent and more government-driven.
A stronger yuan trend can lift Chinese purchasing power for imports, but the effect on feed commodity prices is limited and indirect.
actionforex.comActionForex.comMay 30, 2017After 42 past neutral policy events, USDCNY moved a median -0.0% over 5 sessions (50% higher; middle half -0.3% to +0.4%), 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 counter-cyclical factor added to the fixing, and USDCNY's fall afterward, helped lower the pair, though the article's timing and 'sold off' wording are ambiguous.
