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USD/CNH bumped higher after a weaker.....>

CHINA YUAN
CHINA YUAN: USD/CNH bumped higher after a weaker than expected daily PBoC fix.
China's central bank set its central USD/CNY mid-point at CNY7.0711 vs. BBG
estimate of CNY7.0656. Simultaneous USD appreciation, driven by renewed risk-off
flows, helped the rate hold onto gains.
- Today's move has taken the rate away from yesterday's lows/100-DMA, located at
CNH7.0544/62. The pair sits +147 at CNH7.0710 as we type, with bulls looking to
take out the round figure/50-DMA at CNH7.1000/31. A break here would expose Jun
4 high of CNH7.1337. Conversely, a retreat under yesterday's low/100-DMA would
shift focus to the 200-DMA at CNH7.0471, followed by Apr 10 low of CNH7.0370.
- BBG sources said that "China's banking regulator told some mid-sized national
banks to cut the balance of their high-yielding structured deposits to
two-thirds of last year's levels by year-end".
- Elsewhere, the U.S. will hold nuclear talks with Russia on Jun 22 and the
White House is determined to draw China into three-way arms control talks.
- As a reminder, China reports CPI & PPI data tomorrow.

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