USD/CNH deals 300 or so pips lower on....>

CHINA YUAN: USD/CNH deals 300 or so pips lower on the day at CNH6.8385 at

writing, back from session lows of CNH6.8168, with the pair having a look back

above the 200-DMA which is located at CNH6.8370.

- Initial CNH strength came on the back of the developments at the Trump-Xi

meeting held over the weekend, although we do not see anything substantive in

the details, and are of the opinion that the temporary truce can be seen as a

"can kick" (see POV: PROGRESS, BUT NOTHING TO WRITE HOME ABOUT at 22:51 06/30

BST).

- USD/CNH 1- & 3- month risk reversals seemingly indicate a similar thought

process, they have eased below their respective June lows, but still sit well

above levels witnessed in early May.

- A less than inspiring round of official Chinese PMI readings were released

over the weekend, with the Caixin manufacturing PMI due in circa 15 minutes

time.