Rate continues to recover, edging back.....>

CHINA FX: Rate continues to recover, edging back above Cnh6.72 after falling

sharply on the back of the FOMC rate decision yesterday evening. Yesterday's

USD/CNH close was the lowest since mid-July 2018 and marks the first firm close

below the 200-dma since mid-June. A further leg lower will require a break below

the Cnh6.70 mark, which opens a test of key 38.2% Fib retracement support at

Cnh6.6961 (for the Cnh6.2361-6.9805 move). Chinese data overnight proved

constructive for CNH, with both manufacturing and non-manufacturing PMIs

slightly beating expectations. Nonetheless, the focus remains on the progress

(or lack thereof) of Sino-US trade talks, as SCMP reports yesterday suggested

that there remained a distinct lack of agreement on numerous issues at the most

recent wave of trade negotiations.