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The Chinese yuan could move back below 7 per dollar soon

Data: Investing.com; Chart: Andrew Witherspoon/Axios

The Chinese yuan has weakened significantly against the dollar since Trump announced the U.S. would add 10% tariffs on $300 billion worth of Chinese imports, in addition to the 25% already levied on $250 billion worth of Chinese goods on Aug. 1.

Why it matters: But since the "Phase 1" trade deal, the yuan has strengthened and is close to falling back below 7-to-1 versus the dollar.

Background: The yuan broke through the psychologically important 7-per-dollar barrier soon after Trump announced the tariffs, as China's central bank stopped defending it and allowed it to fall to its weakest level against the dollar since 2008 in late August.

Go deeper: Central banks want more gold, fewer dollars