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CNH and CNY outperform materially so far...>

CHINA FX
CHINA FX: CNH and CNY outperform materially so far Wednesday, with little
headline or newswire catalyst to drive the move. Nonetheless, USD/CNH has broken
below 6.70 support (falling through the Mar13 low in the process), hitting the
lowest levels since March 4th. The moves bucks the losing streak for the CNY,
which has tracked four sessions of declines, the longest streak in over 2
months.
-USD/CNY options activity is higher than average so far today, with $4.2bln in
contracts changing hands so far today, biased toward USD/CNY puts with a
notional waged ratio so far today of almost $3 in puts for every $1 in calls.
One of the larger trades Wednesday appears to be a USD/CNY 1y 6.26/6.55 put
spread (selling $250mln in 6.26 puts, buying $200mln in 6.55 puts). The
structure would break-even at around Cny6.51.

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