CNH hits a new high as China.......>

EMERGING MARKETS: CNH hits a new high as China removed from watchlist

- Confirmation overnight that the US are removing China from their currency

manipulator watchlist helped buoy Chinese markets further, prompting USD/CNH to

hit new cycle lows at 6.8663. The pair has bounced somewhat ahead of the NY

crossover, but CNY remains the strongest performing currency in EM markets

Tuesday.

- Asian currencies traded well, with USD/TWD & USD/IDR extending trade-inspired

losses to operate at levels not seen since 2018. USD/PHP plumbed a multi-year

low too, but bounced as it reopened after a forced market closure linked to the

eruption of Taal volcano - this kept PHP the weakest in Asian FX.

- Elsewhere, the Bank of Thailand expressed concern (again) with the strength of

THB, adding that it is ready to rein it in. USD/KRW dropped to its worst levels

since July, before paring the bulk of initial losses.

- The data calendar is empty for EM currencies Tuesday, keeping focus on the

still-unknown details within the US/China trade deal.