USD/CNH continues to tow the line at the...>

CHINA FX: USD/CNH continues to tow the line at the middle of the week's range,

sitting either side of 7.07 at present. USD/CNH hit the lowest levels of the

session in early Asia, but made little progress in pressing the rate lower

across European and US hours.

-Reports that China could buy $20bln in US agri products in the first year of a

deal went under the radar despite the low figure - the report goes on to say

this could rise to $50bln in year two.

-Despite one-month contracts now capturing the crucial APEC summit in Chile on

November 16/17 (at which it's speculated Trump and Xi Jinping could seal any

trade deal or, at least, stop the escalation of the trade war), implied vols

continue to decline. The USD/CNY 1m implied now sits at the lowest levels since

early August.

-Focus turns to the speech from VP Pence in just over an hour's time. Political

strategists suspect that Pence could play "bad cop," with a focus on human

rights, which may clear the way for President Donald Trump to play "good cop"

with a deal, according to Compass Point.