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The PBOC changed the daily fixing process for the renminbi, sending USDCNY to its lowest level since early 2017. Commentators say the move stabilizes the currency but relies on government control rather than market forces.
The article links the change to the weaker US dollar.
A firmer yuan can raise Chinese import purchasing power, but the effect on feed commodity prices is indirect and small.
actionforex.comBlackwell GlobalMay 31, 2017After 50 past bearish policy events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (46% higher; middle half -0.4% to +0.4%), and -0.0% 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 changed fixing process sent USDCNY to its lowest level since early 2017 on the same date, so it directly pushed the pair down.
