CNY weakened materially at the open,.......>

CHINA FX: CNY weakened materially at the open, with USD/CNY opening well above

the 100-dma at 6.7694 (for the first time since December) as Trump's trade

sabre-rattling unsettled Asia-Pac investors, which sold Chinese equities at the

fastest rate since 2016. USD/CNH rallied to touch 6.8218 shortly following the

open and has pulled lower slightly since, but CNH continues to nurse significant

losses. News that Chinese authorities had called in the 'national team' of

investors to help stabilise prices appears to have soothed volatility somewhat,

but a recovery remains out of reach for now.

-CNY options markets have taken note. USD/CNY 1m risk reversals have been bid

from the off, rising to touch the highest levels of the year (in favour of

USD/CNY calls), with implied vols also suitably bid.

-Attention turns to any formal delay of trade talks between Chinese and US trade

teams, with Bloomberg reporting that China are said to be mulling a formal

delay.