Chinese trade data pushed USD/CNH........>

CHINA YUAN: Chinese trade data pushed USD/CNH lower, the highlight being a solid

beat in exports. Coupled with in-line imports, it allowed trade surplus to

expand to $45.34bn from $19.93bn, with consensus looking for a contraction to

$8.68bn. - The rate was already in retreat in the lead-up to the release. A

recovery in broader risk appetite applied pressure, magnified by headlines re:

Kao & Kitasato University discovering an antibody suppressing Covid-19.

- Earlier, Caixin Services PMI firmed up a touch to 44.4 from 43.0, missing

expectations of a return to expansion at 50.1.

- Just worth reflagging that China is considering dropping a numerical GDP

target for this year and providing a description of the goal instead, per a BBG

source report.

- USD/CNH changes hands -159 pips at CNH7.1138. May 4 high of CNH7.1561 provides

the initial bullish target and a break here would shift the focus to Mar 19 high

of CNH7.1653. Conversely, a slide under May 6 low & round figure of CNH7.1000

would open up Apr 30 low of CNH7.0527.

- Flash Chinese Q1 BoP current account balance hits the wires tomorrow.