# China: Behind CNY’s surprise fall - RBS — Octa

> RBS analysts argue the People's Bank of China has stopped defending USD/CNY at 6.70 after the National Holiday. They say the yuan's move mainly reflects broad dollar strength rather than a policy shift. The analysts note the PBoC is still slowing the yuan's decline by setting fixings slightly below the rule-implied level.

- Date: 2016-10-13 · published 2016-10-13T12:00:00.000Z
- Category: macro · region China · magnitude medium
- Page: https://feedsoft.ai/events/5889-china-behind-cny-s-surprise-fall-rbs-octa
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

A weaker yuan with stable policy support can gradually reduce China's buying power for imported feed ingredients. Traders should watch whether the PBoC intervenes further if depreciation accelerates.

## Read by commodity

- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2016-10-17 | 5 | +1.0% | 2.8 | RBS said the PBoC stopped defending 6.70 and the move reflected broad dollar strength, explaining the sharp USD/CNY rise. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-01-25 | [Surprise China MLF rate rise weighs on bonds; yuan and money rates fall \| Reuters](https://feedsoft.ai/events/73175-surprise-china-mlf-rate-rise-weighs-on-bonds-yuan-and-money-rates-fall-reuters.md) | +0.3% | +0.3% |
| USDCNY | 2016-06-30 | [China's yuan sees biggest quarterly fall on record](https://feedsoft.ai/events/12456-china-s-yuan-sees-biggest-quarterly-fall-on-record.md) | +0.7% | +0.3% |
| USDCNY | 2024-12-03 | [CNY/USD: China’s Yuan Falls to One-Year Low on Tariff Risk, Dollar Gains - Bloomberg](https://feedsoft.ai/events/27168-cny-usd-china-s-yuan-falls-to-one-year-low-on-tariff-risk-dollar-gains-bloomberg.md) | -0.2% | +0.4% |
| USDCNY | 2018-02-08 | [China's Yuan Toppled From Two-Year High as Trade Data Surprises - Bloomberg](https://feedsoft.ai/events/7104-china-s-yuan-toppled-from-two-year-high-as-trade-data-surprises-bloomberg.md) | +1.3% | +1.2% |
| USDCNY | 2024-07-25 | [China central bank surprises by lending again at lower rates \| Reuters](https://feedsoft.ai/events/7521-china-central-bank-surprises-by-lending-again-at-lower-rates-reuters.md) | -0.6% | -1.8% |

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/371559/

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