What's the role of the Chinese yuan in forex?
The yuan is managed by the People's Bank of China within a daily band, not freely floated like the majors. Its moves still ripple through markets — especially into commodity currencies tied to Chinese demand.
Questions for the thread:
- how does the yuan's managed float differ from free-floating pairs?
- which pairs do you watch for China signals?
- how do Chinese data releases reach your trades?
The commodity currencies guide covers the China-AUD channel.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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