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GBPUSD TECHS

Key Resistance Exposed

EURUSD TECHS

Consolidating

EUROSTOXX50 TECHS

(M1) Approaching Key Support

BTP TECHS

(M1) Downtrend Extends

GILT TECHS

(M1) Key Support Zone Exposed

SCHATZ TECHS

(M1) Clears Congestion Support

USD/CNH Bounces Off A Multi-Month Low

CHINA YUAN

Spot USD/CNH has moved away from session/multi-month lows and returned into yesterday's range. The rate last deals -16 pips at CNH6.9308.

  • The initial round of sales was driven by broader greenback weakness. Hard to pin the recoil on any particular headline, worth mentioning that the DXY has remained subdued.
  • In another reminder about boiling Sino-U.S. tensions, Hong Kong Chief Exec Lam noted that she has troubles using her credit card after being targeted by U.S. sanctions.
  • Meanwhile, China's continues to fight trade skirmishes on several fronts, with the MOFCOM opening an anti-dumping probe into Australian wine.
  • Bears need the rate to extend losses past Mar 9 low/round figure of CNH6.9049/6.9000 to gain some impetus. Bulls would be pleased by a jump above Aug 12 high of CNH6.9549, which would shift focus to the psychological CNH7.0000 level.
  • Looking ahead, China's LPR fixing is due Thursday.
MNI London Bureau | +44 203-865-3806 | krzysztof.kruk@marketnews.com