CNH, CNY rallies as PBOC signal action if.....>

FOREX: CNH, CNY rallies as PBOC signal action if USD/CNY nears 7.00

-While the greenback trades in minor negative territory in the closing stages of

US trade Tuesday, it's come well off the lower levels and has been convincingly

outperformed by the CNH, which started the European session strong and

solidified the gains as MNI sources reported the PBOC may "vigorously defend the

Yuan if USD/CNY nears 7.00". The news pressed USD/CNH down to lows of Cnh6.8248,

equalling yesterday's poorest levels.

-In G10, NOK and CAD sit at opposite ends of the table despite their common

commodity links as stellar Norwegian industrial production numbers pressed

EUR/NOK below the 50-dma at Nok9.4972. USD/CAD, meanwhile, trades at a one-week

high as traders eye the 55-dma at C$1.3094 for the next leg higher.

-Elsewhere, most other G10 FX traded inside recent ranges with little data or

speakers throughout the session. Nonetheless, GBP underperformed for a second

session, re-approaching YTD lows.

-Data Wednesday is few and far between but central bank events see a speech from

Fed's Barkin and the RBNZ rate decision late US (Weds)/early Asia(Thurs).