CNH shoots back above 7.00 as......>

EMERGING MARKETS: CNH shoots back above 7.00 as tariff can kicked

-USD/CNH fell sharply as wires reported the USTR are delaying an imminent wave

of tariffs on Chinese goods by three months, prompting USD/CNH to briefly trade

back below the key 7.00 level. The move triggered a wave of risk buying Tuesday,

helping underpin a recovery in the ZAR, TRY and others.

-The gains in EMFX were relatively widespread, even in those currencies that

fell sharply on Monday including BRL, CLP and COP. The same can't be said for

ARS, which fell further, looking to settle above 55.00 against the USD -

although markets remain highly volatile.

-Better oil prices (WTI futures were up as much as 4.5%) prompted outperformance

in USD/RUB, which broke back below the 200-dma at 65.3554. 100-dma support is

next up at 64.2977.

-China's industrial production and retail sales data are the calendar highlights

Wednesday. Nonetheless, focus will likely remain on the increased tensions in

Hong Kong and any Chinese response to the tariff delay from the USTR.