Risk appetite has softened and USD/CNH...>

CHINA YUAN: Risk appetite has softened and USD/CNH last trades at CNH6.7212, ~40

pips better off, despite a stronger yuan fixing today. The PBOC set its yuan

parity to USD at CNH6.7142, in line with the RTRS estimate.

- As a reminder, over the weekend chief White House econ adviser Kudlow said

that Chinese & U.S. officials will continue trade talks in a series of

teleconferences this week. Participants will closely watch any fallout from

these talks.

- Elsewhere, China and North Korea opened a new border crossing, which according

to the China News Service hosts an "advanced customs facility."

- With the rate consolidating towards the lower end of its YTD range, the

initial bearish target is provided by the 21-DMA at CNH6.7176. Below here brings

the channel resistance-turned-support at CNH6.6771 into view. Meanwhile, bulls

need to clear the 50-DMA at CNH6.7302 before challenging the CNH6.7500 mark,

which capped gains on Mar 28.