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Despite earlier trading in -ve...........>

CHINA YUAN
CHINA YUAN: Despite earlier trading in -ve territory, USD/CNH has jumped as
onshore trading reopened after a hiatus lasting since Jan 23. USD/CNH has
punched through the CNH7.000 figure and trades +79 pips at CNH7.0058. Bulls look
at the nearby Dec 23/24 highs of CNH7.0131 as the initial target & a break here
would open the 50$ retracement of Sep 3 - Jan 20 slide/100-DMA at CNH7.0211/46.
Bears look for a pullback towards CNH6.9879, the 200-DMA.
- USD/CNH has surged in tandem with USD/CNY, which gapped ~430 pips higher at
the open & extended gains past CNY7.0, printing best levels since Xmas. USD/yuan
picked up a fresh bid around the time the PBoC cut reverse repo rates.
- Highlighted PBoC action was part of a slew of measures taken to shore up
investor confidence & ameliorate broad-based sell-off in mainland markets,
rattled by a post-LNY reaction to the Wuhan virus outbreak & related worries.
- China's Caixin m'fing PMI registered at 51.1 vs. the prior 51.5 & exp. of
51.0. However, the survey was taken before the coronavirus situation escalated.
The services gauge is due Wednesday, with Friday's trade & foreign reserves data
concluding the local data releases this week.

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