# Its leash lengthened, China's yuan flirts with trade war role

> China let the yuan weaken past 7 per dollar, a level it had long treated as a red line. Forecasts for the currency depend on whether the trade war drags into 2020 and hurts exports and investment.

- Date: 2019-09-27 · published 2019-09-27T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/57289-its-leash-lengthened-china-s-yuan-flirts-with-trade-war-role
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A weaker yuan makes Chinese buyers more price-sensitive toward US farm imports and can offset US tariffs, which tends to pressure US soybean and feed export prices.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-09-03 | [Trade war could force heavier hand from China on yuan](https://feedsoft.ai/events/63264-trade-war-could-force-heavier-hand-from-china-on-yuan.md) | +0.4% | +0.6% |
| USDCNY | 2019-06-11 | [For China's yuan, the path toward 7 per dollar is now wide open \| The Straits Times](https://feedsoft.ai/events/58818-for-china-s-yuan-the-path-toward-7-per-dollar-is-now-wide-open-the-straits-times.md) | -0.1% | -0.6% |
| USDCNY | 2022-12-06 | [China's yuan slips, traders wary of reopening risks \| Reuters](https://feedsoft.ai/events/6574-china-s-yuan-slips-traders-wary-of-reopening-risks-reuters.md) | +0.2% | -1.1% |
| USDCNY | 2020-11-13 | [Chinese yuan after Biden election win, Trump's trade war](https://feedsoft.ai/events/50360-chinese-yuan-after-biden-election-win-trump-s-trade-war.md) | -0.4% | -1.0% |
| USDCNY | 2025-05-01 | [China Engineers Orderly Yuan Drop as Trade War Threatens Growth](https://feedsoft.ai/events/25351-china-engineers-orderly-yuan-drop-as-trade-war-threatens-growth.md) | -0.6% | -1.2% |
| SOY | 2018-09-03 | [Trade war could force heavier hand from China on yuan](https://feedsoft.ai/events/63264-trade-war-could-force-heavier-hand-from-china-on-yuan.md) | +0.1% | +3.0% |
| SOY | 2019-06-11 | [For China's yuan, the path toward 7 per dollar is now wide open \| The Straits Times](https://feedsoft.ai/events/58818-for-china-s-yuan-the-path-toward-7-per-dollar-is-now-wide-open-the-straits-times.md) | +6.3% | +2.8% |
| SOY | 2018-09-28 | [US-China trade war may push yuan 10 percent lower: Economist Andy Xie](https://feedsoft.ai/events/63265-us-china-trade-war-may-push-yuan-10-percent-lower-economist-andy-xie.md) | +0.5% | -1.5% |

## Sources

- reuters.com: https://www.reuters.com/article/china-markets-yuan/corrected-its-leash-lengthened-chinas-yuan-flirts-with-trade-war-role-idUSL3N26G1BJ/

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