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China's yuan weakened on Tuesday as the dollar gained broadly after unexpectedly strong U.S. factory and durable goods orders. The spot yuan slipped 0.2% to 6.9738 per dollar despite the central bank setting its guidance rate at a two-month high.
The currency remained up nearly 5% since November on hopes for China's economic reopening.
A weaker yuan raises the cost of dollar-priced feed imports for Chinese buyers, which can dampen demand for U.S. commodities. The move reflects dollar strength rather than a new commodity shock.
reuters.comDec 6, 2022After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
