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Risk aversion pushed USD/CNH back........>

CHINA YUAN
CHINA YUAN: Risk aversion pushed USD/CNH back above the CNH7.0000 level today.
The rate pulled back from highs after a stronger than expected PBoC fix, which
saw the central USD/CNY mid-point set below CNY7.0 for the first time since
March. Buying pressure resurfaced after this brief hiccup and the rate last
deals +116 pips at CNH7.0092.
- Vice Head of the PBoC's macroprudential policy bureau said that the yuan will
be directly traded with more currencies, but stopped short of naming any
particular currencies.
- In the latest escalation of Sino-U.S. tensions, Washington sanctioned a
Politburo member Chen Quanguo over human rights abuses against Xinjiang Uighurs.
- A jump above CNH7.0296, which represents the high of Jul 8, would expose the
200-DMA at CNH7.0406. Meanwhile, a fall through yesterday's low of CNH6.9809 is
needed to give bears some fresh impetus and open up the lower 3.0% Bollinger
band at CNH6.9679.
- Next week's docket includes China's trade balance (Tuesday), as well as
quarterly GDP & monthly economic activity indicators (Thursday).

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