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USD/CNH dropped onto the CNH7.0 mark.....>

CHINA YUAN
CHINA YUAN: USD/CNH dropped onto the CNH7.0 mark yesterday in its fifth straight
day of losses after printing the YtD high last Friday. Gradual resumption of
operations among Chinese businesses and moderating domestic Covid-19 case counts
likely helped the yuan, as the focus turned more to the virus' global spread.
- The rate has shed earlier marginal gains, last trades flat at CNH7.0082. The
PBoC set its USD/CNY mid-point at CNY7.0066, marginally below estimates.
- Bears would be pleased by a retreat below the 200- & 100-DMAs at CNH7.0028/23
(note their recent bearish crossover), the CNH7.0 mark & yesterday's low of
CNH6.9978. A break here would open the 38.2% retracement of the Jan 20 - Feb 21
rally at CNH6.9764. Meanwhile bulls keep an eye on the Feb 26 peak at CNH7.0377.
- China reports its official PMIs on Saturday. Caixin PMIs are due next Monday
(m'fing) & Wednesday (services & composite). 

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