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The yuan strengthened in early Asian trade as the PBOC guided its midpoint higher, the first such move in two weeks. The People's Bank of China fixed the midpoint at 6.6273 per dollar, firmer than the prior day.
The move came about a week before the 19th Communist Party Congress.
A firmer yuan lowers USD/CNY, which eases import costs for China's feed and grain buyers. The move looks aimed at stability rather than a sustained trend, so the price impact is limited.
cnbc.comYen Nee LeeOct 10, 2017After 362 past bearish macro events, Chinese Yuan (CNY per USD) moved a median -0.1% over 5 sessions (42% higher; middle half -0.4% to +0.1%), and -0.2% 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 PBOC set a stronger midpoint for the first time in two weeks ahead of the Party Congress, signaling policy support for the yuan and prompting spot gains.
