# What keeps driving USD down and CNY well-supported?

> A commentary argues the US dollar and yuan dynamics are driven by economic fundamentals, with China recovering from COVID-19 while US cases are rising sharply. It describes US economic recovery as stalling since mid-June.

- Date: 2020-07-02 · published 2020-07-02T12:00:00.000Z
- Category: macro · region China · magnitude low
- Page: https://feedsoft.ai/events/9733-what-keeps-driving-usd-down-and-cny-well-supported
- Commodities: [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A weaker US economic outlook relative to China supports a softer dollar and a firmer yuan, which can affect China's import purchasing power for US feed inputs.

## Read by commodity

- DXY: bearish ▼
- USDCNY: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDCNY | 2017-10-12 | [USD/CNY: Volatility interpreted as more to the downside - Westpac — Octa](https://feedsoft.ai/events/6411-usd-cny-volatility-interpreted-as-more-to-the-downside-westpac-octa.md) | +0.6% | +0.6% |
| USDCNY | 2026-03-01 | [What can China do to slow down its rising currency?](https://feedsoft.ai/events/9162-what-can-china-do-to-slow-down-its-rising-currency.md) | +0.6% | +0.8% |
| USDCNY | 2020-11-05 | [Dollar drops as stocks surge, Fed keeps policy unchanged](https://feedsoft.ai/events/50331-dollar-drops-as-stocks-surge-fed-keeps-policy-unchanged.md) | -0.6% | -1.8% |
| USDCNY | 2021-01-05 | [USD/CNY to tick down in the year ahead - MUFG - Forex Crunch](https://feedsoft.ai/events/12072-usd-cny-to-tick-down-in-the-year-ahead-mufg-forex-crunch.md) | +0.3% | +0.0% |
| USDCNY | 2020-08-27 | [​Stay Cautious Trading Despite Strong CNY & Steady USD-News-WikiFX](https://feedsoft.ai/events/51842-stay-cautious-trading-despite-strong-cny-and-steady-usd-news-wikifx.md) | -0.7% | -0.8% |
| DXY | 2020-05-29 | [What’s driving the Euro's sharp rally?](https://feedsoft.ai/events/53355-what-s-driving-the-euro-s-sharp-rally.md) | -1.4% | -0.6% |
| DXY | 2026-07-31 | [Ringgit Gains on US Data Miss, but Fed Hike Bets Keep Dollar Supported](https://feedsoft.ai/events/18623-ringgit-gains-on-us-data-miss-but-fed-hike-bets-keep-dollar-supported.md) | -0.1% | -1.1% |
| DXY | 2026-01-29 | [What the sinking U.S. dollar means to Canada and world](https://feedsoft.ai/events/21288-what-the-sinking-u-s-dollar-means-to-canada-and-world.md) | +0.6% | +0.3% |

## Sources

- asiafinancial.com: https://www.asiafinancial.com/what-keeps-driving-usd-down-and-cny-well-supported

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