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6.8900 is acting as a key resistance level....>

CHINA: 6.8900 is acting as a key resistance level in USDCNH as the pair
continues to trade sideways decoupling from the FX majors. A resumption of
equity weakness poses the main risk to the yuan. 
- EURCNH continues to look weak after breaking back below the key 8.0 level
which suggests the recent false break is set to continue reversing. The same
holds true for GBPCNH which has lost its grip on the key 9.0 level.
- While mainland markets are close for a holiday today, Hong Kong equity markets
are returning from yesterday's break on a bearish note, with the HSI shedding
1.5%. A resumption of equity weakness appears to be in the offing and would
likely see USDCNH break above resistance, particularly given the ongoing
strength of the dollar versus the majors. 

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