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CHINA YUAN

Spot USD/CNH peeked above yesterday's high, but has already faded the move as U.S. Pres Trump urged the Congress to back PPP & airline assistance. The rate last deals -7 pips at CNH6.7468, amid holiday thinned liquidity.

  • Bearish focus remains on Oct 5 cycle low of CNH6.7136 and a break here would expose the CNH6.67-68 area, which cushioned losses in 2019. Bulls need to reclaim Sep 24 high of CNH6.8462 to gain some momentum.
  • China returns from holidays on Friday, but an update on foreign reserves comes out today, while Caixin Services & Composite PMIs are due tomorrow.

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