# China: Revising yuan lower but 7.0 should hold | articles | ING THINK

> ING revised its USD/CNY and USD/CNH forecasts to reflect a weaker yuan, citing rising US-China trade and technology tensions. ING still expects the 7.0 level to hold because a move through it would cause severe onshore market turmoil.

- Date: 2019-06-03 · published 2019-06-03T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/58821-china-revising-yuan-lower-but-7-0-should-hold-articles-ing-think
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

A forecast for a weaker yuan implies more expensive Chinese imports of US farm goods, but a held 7.0 level limits how far the currency drag on feed demand could extend.

## Read by commodity

- SOY: bearish ▼
- USDCNY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-06-29 | [Why we’re revising our yuan forecast down again \| articles \| ING THINK](https://feedsoft.ai/events/8537-why-we-re-revising-our-yuan-forecast-down-again-articles-ing-think.md) | +0.2% | +2.8% |
| USDCNY | 2022-10-25 | [FX Daily: People’s Bank of China loosens its hold on the renminbi \| articles \| ING THINK](https://feedsoft.ai/events/39356-fx-daily-people-s-bank-of-china-loosens-its-hold-on-the-renminbi-articles-ing.md) | +0.6% | -1.7% |
| USDCNY | 2018-05-30 | [Why we’re forecasting the yuan to depreciate \| articles \| ING THINK](https://feedsoft.ai/events/65232-why-we-re-forecasting-the-yuan-to-depreciate-articles-ing-think.md) | -0.2% | +2.5% |
| USDCNY | 2019-05-08 | [EM FX: Floating in a sea of red \| articles \| ING THINK](https://feedsoft.ai/events/10432-em-fx-floating-in-a-sea-of-red-articles-ing-think.md) | +1.4% | +2.0% |
| USDCNY | 2019-08-09 | [China lowers yuan mid-point to fresh 11-year low, but higher than forecasts \| Reuters](https://feedsoft.ai/events/8381-china-lowers-yuan-mid-point-to-fresh-11-year-low-but-higher-than-forecasts.md) | -0.2% | +1.0% |
| SOY | 2019-05-08 | [EM FX: Floating in a sea of red \| articles \| ING THINK](https://feedsoft.ai/events/10432-em-fx-floating-in-a-sea-of-red-articles-ing-think.md) | +0.0% | +6.4% |
| SOY | 2024-02-05 | [FX Daily: Flip Flop \| articles \| ING THINK](https://feedsoft.ai/events/31892-fx-daily-flip-flop-articles-ing-think.md) | -0.4% | -3.5% |
| SOY | 2019-04-25 | [Does secular stagnation help the dollar? \| articles \| ING THINK](https://feedsoft.ai/events/59759-does-secular-stagnation-help-the-dollar-articles-ing-think.md) | -1.8% | -3.1% |

## Sources

- think.ing.com: https://think.ing.com/articles/china-revising-yuan-lower-but-7.0-should-hold/

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