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The Chinese yuan has appreciated about 10 percent against the dollar since the start of 2017, after rising almost 7 percent in 2017 and reversing three years of depreciation. Analysts say Beijing is allowing the gain partly to avoid being labelled a currency manipulator by President Trump, while the yuan remains mostly stable against a trade-weighted basket.
A stronger yuan makes Chinese imports of US and other dollar-priced feed commodities cheaper in yuan terms in principle, but the effect on import demand is modest given the yuan's stability on a trade-weighted basis. Currency moves of this kind are a background factor for feed import pricing rather than a direct driver.
cnbc.comHuileng TanFeb 23, 2018After 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.
After 359 past neutral macro events, US Dollar (Broad) moved a median -0.0% over 5 sessions (49% higher; middle half -0.4% to +0.4%), and -0.1% 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.
