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The collapse in Chinese rates since the.......>

CHINA
CHINA: The collapse in Chinese rates since the start of the year is showing
reversal potential with 2-year swaps rising 20bps from Tuesday's lows to
2.8200%, helped higher by the rally in Chinese stocks. The 21-DMA, currently at
2.8676%, has acted as resistance over recent months, so a break above this level
would make a strong case for a bullish reversal.
- USDCNH has edged lower today in line with the recovery in rates and stocks,
currently trading at 6.8200. The pair has broken below the steep uptrend in
place since the July 10 lows and needs to fall below the 21-DMA at 6.7945 to
suggest a bearish reversal pattern is underway. 

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