# China: The yuan breaks out - Westpac - Forex Crunch

> Westpac analysts note the yuan had followed a clear appreciation trend from August 2017 until mid-June 2018, then reversed. Since June 12, nearly all G10 currencies fell against the dollar, and the yuan was among the weakest in Asia at about -3.2%. The analysts doubt China views a weaker yuan as a deliberate policy tool in the trade fight.

- Date: 2018-06-28 · published 2018-06-28T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/8534-china-the-yuan-breaks-out-westpac-forex-crunch
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

The broad dollar strength and yuan weakness pressure commodity-linked currencies and raise the dollar cost of Chinese imports, a modest headwind for US feed exports. The analysts' view that the yuan slide is not a deliberate policy tool limits the expected scale of the price effect.

## Read by commodity

- AUDUSD: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| USDCNY | 2018-06-28 | 5 | +2.1% | 3.8 | Westpac analysis documents the reversal of the yuan's appreciation trend and its roughly 3% drop since mid-June, confirming the move within the window, though it gives limited causal detail. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2020-01-30 | [What the coronavirus outbreak means for the Chinese yuan - MarketWatch](https://feedsoft.ai/events/55308-what-the-coronavirus-outbreak-means-for-the-chinese-yuan-marketwatch.md) | +0.8% | +1.3% |
| USDCNY | 2016-12-19 | [China outflows rising in both yuan payments, forex: Goldman Sachs - The Business Times](https://feedsoft.ai/events/73698-china-outflows-rising-in-both-yuan-payments-forex-goldman-sachs-the-business.md) | -0.2% | -1.8% |
| USDCNY | 2018-10-31 | [Why the Chinese yuan is falling](https://feedsoft.ai/events/62761-why-the-chinese-yuan-is-falling.md) | -0.7% | -0.4% |
| USDCNY | 2020-02-20 | [Breaking: The People's Bank of China cut interest rates: AUD and Yuan sliding — Octa](https://feedsoft.ai/events/54798-breaking-the-people-s-bank-of-china-cut-interest-rates-aud-and-yuan-sliding-octa.md) | +0.3% | +0.7% |
| USDCNY | 2016-06-27 | [How China’s yuan could be the currency whipping boy of Brexit - MarketWatch](https://feedsoft.ai/events/12455-how-china-s-yuan-could-be-the-currency-whipping-boy-of-brexit-marketwatch.md) | +0.6% | +1.0% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2018/06/28/china-the-yuan-breaks-out-westpac/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.