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The New York Times reports that Chinese companies and families are moving money out of the country because of concerns about the economy. The central bank has been spending billions of dollars of reserves each month to prop up the renminbi.
The article links the falling reserves to the government's effort to keep money inside China.
Reserve drawdowns and capital flight point to continued pressure on the renminbi, which tends to lift USD/CNY. A weaker yuan can slow China's dollar-denominated feed purchases.
nytimes.comKeith BradsherFeb 7, 2017After 398 past bullish macro events, USDCNY moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% 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.
