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The dollar eased slightly after hitting a two-decade peak the prior week. The offshore yuan fell toward a September 2020 low of 6.8380 after weak April retail and factory data from China, which were hit by COVID lockdowns.
A strong dollar and a weak yuan together raise the cost of dollar-priced commodities for importers outside the US and weaken China's import appetite. Dollar strength tends to pressure US grain and oilseed export prices.
financialpost.comReutersMay 16, 2022After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
After 398 past bullish macro events, Chinese Yuan (CNY per USD) 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.
Weak April retail and factory data on May 16 pushed the offshore yuan toward 6.838 per dollar, which is a depreciation in the window; note CNY per USD moved up in reality, and the dataset's sign may be inverted, but this is the nearest in-window driver.
