Despite showing below Cny7.00 a few........>

CHINA FX: Despite showing below Cny7.00 a few times over the past 2 weeks or so,

CNY hit the lowest levels against the USD since early November in recent trade,

with the tweet from CNBC's Eunice Yoon undermining sentiment toward the

currency. USD/CNY rallied to touch 7.0282, while USD/CNH touched 7.0319. Despite

the move in spot, futures volumes barely budged, with CNY market activity well

below recent averages. Small scale USD/CNY call option buying has been evident

since the NY open, but the hedging markets remains somewhat quieter than recent

sessions - reflected in the lack of response from CNY implied vols.

-To the upside, USD/CNH sits just shy of the 100-dma at 7.0398 and an

improvement through here could open 7.07 and the 50-dma. Of note last week,

China's CASS forecast USD/CNY remaining rangebound between 7.00-7.20 next year.