I do not find it unusual that the euro is the most correlated currency in the G10 to the Chinese yuan, however, the coefficient is now at the highest it has ever been, above 70%.
There were a little over $105 billion of German exports headed into China in 2023, making it its second-biggest non-EU trading partner after the U.S.
In terms of sensibility, antipodes record a higher short-term beta vs the yuan, the euro follows at 1.30. USD/CNY trades shy of 7.25, PBoC flexibility to the yuan fixing could dictate the tone for the euro and the aussie.
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