A combination of improvement in..........>

CHINA YUAN: A combination of improvement in broader risk appetite (nothing much

on the wires to underpin that recovery) and a slightly firmer than expected PBoC

fix pushed USD/CNH lower. The rate trades at CNH7.0755, 104 pips worse off as we

type, on the first day after China's long weekend.

- China's industrial profits rebounded in May, rising 6.0% Y/Y after a 4.3%

decline in Apr. It was the first positive reading since Nov.

- A top adviser to HK Chief Exec told BBG that the security law will not to be

enforced if HK residents don't cross red lines. Xinhua reported that a committee

of China's NPC has revised the bill and submitted it for vote.

- A fall through Jun 24 low/200-DMA at CNH7.0455/49 would give bears a green

light for targeting Jun 10 low of CNH7.0401. Bulls look for a rebound above Jun

15 high of CNH7.0974 & the 50-DMA at CNH7.1019.

- China's PMI data headline the local docket this week. Official figures will be

released tomorrow, while Caixin counterparts are due Wednesday (Manufacturing)

and Friday (Services & Composite).