# China's currency moves will be the best measure of how well US-China trade talks are going

> Strategists say the yuan's firming against the dollar since the Trump-Xi meeting in Buenos Aires is a positive sign for US-China trade talks. The central bank is steadying the currency through its daily fixing and trading band. A sharp yuan fall would signal weakening commitment to the talks.

- Date: 2018-12-12 · published 2018-12-12T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/61792-china-s-currency-moves-will-be-the-best-measure-of-how-well-us-china-trade
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Yuan stability is read as a gauge of trade-deal progress, so it shapes expectations for US soybean, corn and meal purchases by China. Market sentiment on this link affects agricultural futures.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2018-04-17 | [China currency moves hang in the balance in U.S. trade spat \| Reuters](https://feedsoft.ai/events/65710-china-currency-moves-hang-in-the-balance-in-u-s-trade-spat-reuters.md) | +0.6% | +1.0% |
| USDCNY | 2019-09-26 | [China sells 10 billion yuan of bills in Hong Kong to protect currency ahead of National Day, US trade war talks \| South China Morning Post](https://feedsoft.ai/events/57292-china-sells-10-billion-yuan-of-bills-in-hong-kong-to-protect-currency-ahead-of.md) | +0.2% | -0.9% |
| USDCNY | 2016-06-27 | [How China’s yuan could be the currency whipping boy of Brexit - MarketWatch](https://feedsoft.ai/events/12455-how-china-s-yuan-could-be-the-currency-whipping-boy-of-brexit-marketwatch.md) | +0.6% | +1.0% |
| USDCNY | 2021-03-31 | [China’s currency set for worst month since US trade war](https://feedsoft.ai/events/48332-china-s-currency-set-for-worst-month-since-us-trade-war.md) | -0.5% | -1.3% |
| USDCNY | 2018-12-24 | [China to keep yuan currency from sliding below 7 to the US dollar as part of trade war deal, analysts said \| South China Morning Post](https://feedsoft.ai/events/61790-china-to-keep-yuan-currency-from-sliding-below-7-to-the-us-dollar-as-part-of.md) | -0.7% | -2.3% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/12/12/this-could-be-the-best-measure-of-how-well-trade-talks-are-going-between-the-us-and-china.html

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