The Yuan

The nickname for the Chinese Currency is Yuan. It's official name is Renminbi. The year before the Chinese Communists took control of the government of China, they opened the Bank of China and issued their new currency.

This chart assumes that the Bank of China opened at 9:00 am and immediately used their currency. The Reminibi is difficult to check because the bank makes decisions whether or not to allow the value to float at preannounced meetings. During the past few years the Yuan was allowed to float when Pluto made a conjunction to the Mars/Jupiter at 3 degrees Capricorn.

A quick look at this chart and immediately you see transiting Saturn moving to a conjunction with Neptune. I like to attribute the rulership of paper currency as well as interest rates to Neptune. When Saturn passed over Neptune in December 2010 and March 2011 the Bank of China raised interest rates. The bank says it will raise interest rates again during August. Since December the Yuan has gradually lost value against world currencies. The Yuan has moved from USC/CNY 6.67 in December 2010 to USD/CNY 6.44 August 7, 2011.

November 24, 2011 there will be a solar eclipse exactly on the Yuan's Mercury and very close to the Yuan's Sun. News from the Chinese bank will be difficult to translate into Western banking terms and the Western currencies will find Chinese policies difficult to understand.

Until August 31 expect Chinese interest rates to go up and the value of the Yuan to fluctuate rapidly against world currencies. Starting September 1, 2011 expect the Yuan to increase gradually in value as the Chinese bank brings home Yuan in a play to become recognized as a reserve currency. However at the end of October a string of Jupiter transits will force the Chinese bank will return to printing money to overcome pressures from the speculators.

Interesting China invented paper currency and has a checkered history of devaluing the paper with the printing press.

Chinese Currency

Yuan as Reserve Currency?

With the G20 meeting the IMF has announced a plan that would make China the third-strongest member. The position will allow China to take more responsibility as well as greater power.

The North Node and Pluto are conjunct the Jupiter Mars conjunction of the chart for the Chinese Currency. Pluto has been near 3 Capricorn since 2009 and finally achieved its goal of bringing the Yuan/Renminbi as one of the reserve currencies for the world market.

The Yuan has risen 3% since July and over the past 5 years it is up nearly 25%. notice that in 2006 Jupiter moved across the Venus South Node conjunction of the Yuan and as it passed each planet through Sagittarius and Capricorn the Yuan gained value against the Dollar, Euro and Yen.

The transit of Saturn to the natal Pluto gave the currency power to its structure. It's Saturn return kept the Yuan on its path. Saturn moving to a conjunction with Neptune may provide the opportunity to allow the Yuan some flexibility with interest rates in China allowed to rise to prevent a bubble in real estate or stocks. As Saturn reaches the MC the Yuan should become fairly valued however that will be 2012. The Saturn transit will allow the Yuan to remain a reserve currency for about 10 years.

The IMF has made a valid decision as to the future of the Chinese currency and its ability to take responsibility for the value of the Yuan. But what about the IMF?

Currency Bubble?

Are we headed for a world wide currency bubble? Jeremy Grantham suggests it is a possibility in his interview on CNBC, Nov.11, 2010. Bubbles usually occur when Jupiter and Uranus are in Aries and that will occur March-June 2011. This blog will discuss sectors where bubbles might occur during the next few months. Charts for the dollar, and euro appear in The Textbook for Financial Astrology. Stay tuned to this blog.

Chinese Currency: Renminbi alias Yuan

The headline is that the Chinese Premier Lu's visit to the USA signals an easing in the valuation of Chinese currency to the US Dollar. Reporters expect that China banking officials will allow a modest appreciation in the value of the Renminbi alias Yuan. Many economists believe that it is 20% over valued against all other currencies.

Renminbi Floats

July 21, 2005 the peg of the Chinese Renminbi was lifted and a managed float was put into place. At that point in time transiting Neptune was opposed the Renminbi's Pluto and Jupiter was conjunct its Neptune. In Financial astrology Neptune represents interest rates which is basically the meaning of a float.

Example of the Float

July 21, 2005 the Chinese Central Bank lifted its peg to foreign currencies and allowed a managed float using a basket of currencies. Until July 21,2005 it would cost 8.2 Renminbi to buy one US dollar. In July 2007 the price was 7.6 and today it takes 6.8 Renminbi to buy one US dollar.

Chinese Invented Paper Money

Chinese currency has a long and very interesting history. They invented copper coins with a hole in the center. Folks strung the coins together and traded the strings of coins for goods. Eventually the coin strings weighed more than their owner. Inconvenient!

Find a need and fill it

The Chinese invented paper money known as Mulberry currency since the paper was from the inner bark of a Mulberry tree. Originally the paper money could be traded for copper coins, silver or gold but like all great currencies it soon became a fiat currency as rulers ran their printing presses faster and faster.

Today's Yuan

A year before the final take over of the China's government The People's Party established a bank to issue a new currency. It was a brilliant move and the date appears to have been set by someone not very conversant in Chinese Astrology since it is the year of the earth rat.

The chart above tests well with events in the history of this version of their currency. Therefore we might expect that transiting Pluto conjunct its Jupiter/Mars and transiting Saturn opposed Uranus square its natal Uranus will ignite some very deliberate action on the part of the Chinese Central Bank to bring the valuation of their currency into balance with the dollar and other world currencies. Their controlled float will be very measured since Saturn seems to be in charge of the pace. Saturn will make a conjunction to the Renminbi Neptune March 25, 2011 thus ending the float.

King Dollar ?

King is a Tough Position to Play.

When you are on the top everyone knows which way to aim their arrows. In this case it is almost prosaic. The dollar has Jupiter at 28 degrees in its ruling sign Sagittarius. Artists love to paint the symbolism of the sign. Half horse and half man drawing a bow with an arrow aimed at the sky. See Llewellyn 2010 wall calendar page for December 2010.

The Astrological Problem

The problem is transiting Saturn opposed transiting Uranus both squaring the Dollar's Jupiter on April 26, 2010. When planets are opposed to each other they can see each other but they can't hear the words the other speaks. Structures (Saturn) can see dramatic change (Uranus) but the structures cannot understand why Uranus insists on changing the neat and tidy way things are at this moment. Both are squaring the Dollar's Jupiter and challenging his dominance. Arrows are aimed from both directions at Jupiter.

Saturn opposed Uranus

November 4, 2008 the opposition of Saturn to Uranus was at 18 Virgo/Pisces (bail out the banks), February 5, 2009 the opposition was a 20 Virgo/Pisces (bail out the autos) and September 15, 2009 the opposition was at 24 Virgo/ Pisces (unemployment). April 26, 2010 is opposition #4 with #5 July 26, 2010 on the Aries point sometimes called the World Axis. Up to this point the opposition seems to have stirred the world of politics and the world of economics with the exposure of scandalous behavior of financial experts concerning the creation of unsustainable debt.

Debt Crisis

Neptune and Jupiter made a conjunction on the Dollar's Pluto December 21, 2009. Discussions concerning the mounting debt of the taxpayer have flourished. Every financial guru has lectured endlessly on the topic with circles and arrows that look like a football coach's play book. Financial reporters have worn out the zero key on their keyboard trying to explain the actual amount of indebtedness to the public. (Neptune=debt, Jupiter=expansion, Pluto=trillions of dollars) Textbook for Financial Astrology Lesson 5 Book 2.

Dollar Squared

The Dollar's new problem is squares. The opposition is applying to a square with Jupiter earned income. Jupiter represents money gathered in stacks. Example your monthly income. The Dollar is challenged to gather enough momentum to maintain its stacks. Jupiter in Sagittarius has plenty of arrows in his quiver but only one in his bow. He has to aim with precision at either the old structures or the disruptive constantly changing ones. Should he aim at Europe or Asia, the banks or technology, exports or imports.

Neptune conjunct the USA Moon

The opposition is challenging Jupiter's power, his energy and his ability to expand. The square is forcing the action. Simultaneously transiting Neptune is applying to a conjunction with the USA Aquarius Moon. Continued expansion of debt is the topic of the blog-a-sphere. Will Jupiter live to fight another day? HMMM. Saturn opposed Uranus will square the Dollar's Mars July 26,2010 two weeks following the eclipse to the Dollar's Moon. Looks like all out economic war during the summer with opposite sides aiming at the Dollar's value.

War of the Titans

In mythology there is the 10 year war of the Titans where finally Jupiter defeats Saturn. Neptune gave his brother Jupiter a hand in the battle. Neptune the planet of deception is conjunct the Moon of the USA chart, maybe the USA public will be deceived by the financial Titans and yet again willingly add to their debt. They could also take the challenge of the square and fight the Titans with the courage of Jupiter. However, Mercury is Retrograde and deception is rampant. Joseph Campbell tells the story in The Masks of the Gods or you can Google it for a rough outline of the tale.

? Whether to play the Dollar long or short. Answer: Don't play Mercury is retrograde. There are three inflation hedges; precious metals, vacant land, and stocks. However you might consider purchasing sterling silver place settings (check the hallmark ; ). Classes via online chat available beginning March 29, 2010.

Australian Dollar

Travis asked about the future of the Australian dollar AUD in relationship to the US Dollar USD.  

The Australian dollar became official Feruary 14, 1966 and I gave it the time of 12:00 pm half way through the business day which is what we do in financial astrology when we do not have an exact time. When you see 12:00 pm on a chart it means pay attention to the planets and their aspects and ignore the houses.  The capital of Australia is Canberra. 

For the history of the AUD verses USD I used the statistics available on the web site http://www.forecast-chart.com/usd-australian-dollar.html  Fortunately the historical chart of the exchange rate between the AUD and USD tracks the currency for 20 years. and gave me the opportunity to check 

Here is a brief history of the AUD verses the USD.

In 1972 it cost 84 Australian dollars to buy 100 US dollars. In 1982 the dollars were par. In 1992 it cost 136 AUD to buy 100 USD and in 2001 it  cost 194 AUD to buy 200 and in 2002 it cost 184 AUD to buy 100 USD.

When the AUD began its Sun was at 24 Aquarius where Jupiter is currently transiting and it had a stellium of Mercury Mars and Saturn in Pisces. 

At the moment it costs 110 AUD to purchase 100USD. The question is will it take fewer AUD to buy USD or more and how will Jupiter influence the exchange.

1982 Par  Jupiter in Scorpio trine the Pisces planets

1992 Jupiter in Virgo opposed the Pisces planets

2001 Jupiter in Gemini conjunct the AUD’s natal Jupiter

2002 Jupiter in Cancer trine the AUD Pisces planets 

It appears that Jupiter produces too many AUD in relation to the USD.

Trend for Jupiter transiting Pisces

Jupiter was in Pisces in 1986 when the AUD was allowed to float. That year it cost 150 AUD for 100 USD and the following year 1987 the AUD was 143 to 100 USD. Therefore the AUD gained in value and then stabilized from 1988-1997.  In 1998 Jupiter returned to Pisces and the AUD was 159 to USD 100 and continued to deteriorate until 2001 when Jupiter returned to its natal position in Gemini.

Now we have a pattern for Jupiter in the chart of the Australian dollar. Jupiter trine its Pisces stellium or conjunct its natal Jupiter tends to produce too many Australian dollars and therefore they lose their value when used to purchase US dollars.

Does this help the Day trader?  It gives the trader first the overall trend and then it tells him that an aspect of transiting Jupiter to the chart of the Australian dollar will tend to increase the number of AUD it takes to buy a USD.

Research using Jupiter Transits

Here is the page I used http://www.oanda.com/currency/historical-rates

during November and December 2009.  Here are the steps we need to consider.

1. Jupiter is applying by transit to the Sun of the AUD. Therefore trades could exceed fractions of a penny.

2. Jupiter made the following aspects on trading days when the moon was not void of course.

3. Now we need to know did the AUD go up from the day before or did it go down 

  

AUD to USD

Nov 3 Moon square Jupiter   .902 day before it was 900 therefore up

Nov 5 Moon trine Jupiter  .905 up

Nov 9 Moon opposed Jupiter .919 up

Nov 10 Sun square Jupiter .926 up

Nov 13 Moon trine Jupiter .930 same

Nov 16 Moon square Jupiter .934 up

Nov 18 Moon sextile Jupiter .931 down

Nov 23 Moon conjunct Jupiter and Venus square Jupiter  .915 same

Nov 30 Moon square Jupiter .907  up

Dec 2 Moon trine Jupiter .919 up

Dec 11 Moon trine Jupiter  .914 up

Dec 14 Sun sextile Jupiter  .913 same

Mars Dec 20 and Mercury rx Dec 26 

Dec 28 Moon square Jupiter

Dec 30 Moon trine Jupiter 

The overall trend is that it takes fewer AUD to buy USD right.?

But we know that Jupiter will leave the conjunction to the AUD Sun. Will this trend change?

The next outstanding problem for the AUD occurs in 2010.  In January the AUD chart shows its Capricorn Venus will be hit by the  Eclipse.   The Central Bank's Capricorn Sun (January 14, 1960 at 10:00 am Canberra) will be hit. The January eclipse will be visible in Australia. 

I discuss the power of eclipses to the charts of exchanges, nation's event charts  and stocks in The Textbook for Financial Astrology.  

Note the previous blog has a chart for the USD.