Chinese yuan gained traction as the PBoC......>

FOREX: Chinese yuan gained traction as the PBoC confirmed that it will sell CNH

denominated bills in Hong Kong later in June and yet again deployed the

counter-cyclical adjustment factor in its daily fixing, which came in stronger

than expected and remained at sub-6.9000 levels. USD/CNH dived through its

uptrend support at CNH6.9380 and threatened a clean break of the 21-DMA.

- Yuan strength failed to spill over into the Antipodeans to any meaningful

degree. The kiwi had already lagged its G10 peers before softening further as NZ

Agriculture Min O'Connor informed that the gov't weighs a conditional ban on the

live export of cattle. NZD lags all of its G10 peers at typing.

- JPY was the second worst G10 performer, weighed on by firmer regional equity

markets. The Nikkei 225 posted gains in spite of a lower open.

- That said, price action within the G10 FX space was generally quite limited.

- Noteworthy data releases today include UK labour market report, Norwegian CPI

and U.S. PPI. ECB's Nowotny & Kazimir, as well as BoE's Saunders & Broadbent

will provide some central bank rhetoric, with the Fed in its blackout period.