CNH has late-in-the-day rally as...>

EMERGING MARKETS: CNH has late-in-the-day rally as US heads to China

-Chinese FX had a decent session, with USD/CNH falling through the lowest levels

of the week following confirmation of the dates when a US trade mission departs

for China to advance trade talks. Rumours also circulated that Chinese President

Xi Jinping could attend, adding to importance of the meetings. USD/CNH fell to

the week's lows following the news, re-targeting 6.8613.

-ZAR outperformed materially following a speech from the South African central

bank governor, who talked up the prospect of the country's inflation target

being moved lower from its current target of 3 to 6%. Kganyago further placed

the onus on the South African government to deal with future economic risks,

arguing that "growth problems fall outside SARB's reach". USD/ZAR traded well

within range of the cycle low at 13.8140. Elsewhere, LatAm FX generally gained,

with BRL and MXN outperforming.

-Focus turns to the Turkish central bank rate decision Thursday, with the vast

majority of analysts seeing fireworks at the first meeting under new

government-appointed CBRT head Uysal.