Offshore yuan continues to soften,.......>

CHINA YUAN: Offshore yuan continues to soften, sapped by Wuhan coronavirus.

USD/CNH sees bulls in the driving seat, as it extends a sharp rebound off

support in the CNH6.86-87 area tested in mid-January. Tuesday's slide back below

the 200- & 50-DMAs proved to be just a modest corrective pullback and the

subsequent hammer candlestick formation bumped the rate to fresh YtD highs

today. The pivotal CNH7.0 level is clearly in sight and momentum studies suggest

that there is room for further appreciation. A jump onto the CNH7.0 handle would

expose the 50% retracement of the Sep 3 - Jan 20 bear market/100-DMA at

CNH7.0211/57. Bears hope that the impact of the recent "death cross" is yet to

filter through & look at yesterday's low of CNH6.9532 as their initial target.

- While onshore markets in China remain closed until Monday (as for now), the

National Health Commission keeps updating the ever-increasing death toll & new

cases count. A panel of WHO experts will convene today to decide on whether to

announce a global emergency. On Friday, China reports official PMI data, which

may capture the early impact of the coronavirus.

- For the chart see: https://emedia.marketnews.com/marketnewsintl/USDCNH3001.png