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China's State Administration of Foreign Exchange said cross-border capital flows should stay stable in 2020, backed by a more flexible yuan exchange rate and a possible current account surplus. The regulator cited the US-China phase one trade deal signed the previous day as positive for the yuan.
A stable, firmer yuan and improved trade climate reduce pressure on Chinese import demand for feed grains and meal, a mildly supportive backdrop for soybean and corn import flows.
english.scio.gov.cnJan 19, 2020After 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.
SAFE said the phase one deal and a flexible yuan should keep capital flows stable, which supports yuan sentiment and reduces depreciation pressure.
