USD/CNH crept higher today, after........>

CHINA YUAN: USD/CNH crept higher today, after Beijing locked down some districts

after detecting a new cluster of coronavirus cases linked to the Xinfadi Market.

BBG has ran a headline noting that another market in China's capital & some

neighbouring compounds have been shuttered. Vice Premier Sun Chunlan said that

the risk of virus spread is very high, which necessitates swift and decisive

measures. The emergence of a new cluster of infections has inspired concerns

over the potential of a broader resurgence of Covid-19 in China.

- The yuan's reaction to a slew of domestic economic activity indicators was

muted. Industrial output continued to recover, but fell short of projections,

while retail sales & fixed assets fell more than exp. Property investment

contracted less than forecast, while unemployment slipped in line with exp.

- USD/CNH trades at CNH7.0859, 83 pips better off. Topside focus falls on the

round figure/50-DMA at CNH7.1000/05 and a clearance of these levels would open

up Jun 4 high of CNH7.1337. Meanwhile, a retreat under Jun 10/Apr 10 lows of

CNH7.0401/0370 would signal that bulls are getting the upper hand.