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USD/CNH dipped amid a round of wider.....>

CHINA YUAN
CHINA YUAN: USD/CNH dipped amid a round of wider risk-on flows, taking out
yesterday's worst levels. The rate briefly ticked away from lows, after the PBoC
fixed its central USD/CNY level slightly above expectations, but has eased off
thereafter. The PBoC also injected CNY10bn via its 7-day reverse repos, leaving
the rate applied to the ops unchanged at 2.20%.
- In an interview with Financial News, PBOC Governor Yi pointed to strong
domestic fundamentals, which, he opined, will be unshaken by the coronavirus
crisis. He noted that China needs to continue its LPC reform and pay attention
to risks of some small & medium Chinese banks.
- Jitters surrounding China's latest attempt to increase its control over Hong
Kong remain. Beijing has tried to offer some reassurance, with one of its top HK
off'ls pledging that there will be no interference in the city's judiciary.
- USD/CNH last sits -87 pips at CNH7.1393, pushing towards fresh session lows. A
fall below the 50-DMA/May 20 low at CNH7.1015/0985 would expose May 8 low of
CNH7.0812. Bulls look to take out May 22/Mar 19 highs of CNH7.1646/53, this
year's best levels. A break here would bring Oct 10 high of CNH7.1684 into play.

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