USD/CNH has added 80 pips on the back....>

CHINA YUAN: USD/CNH has added 80 pips on the back of risk-off flows inspired by

a mildly weaker than exp. CNY fix from the PBoC and last sits at CNH6.9167.

- Conversely, stronger than exp. PBoC fix supported CNY yesterday, while

investors' focus turned to weekend comments from Guo Shuqing, head of China's

banking and insurance regulator, who noted that "those who speculate and short

CNY in the long run will suffer huge losses given China's growth potential, even

as short-term volatilities are normal." The pair shed ~80 pips as a result. 

- During his visit to Japan U.S. Pres Trump said that the U.S. is not ready for

a trade deal with China and warned that tariffs on Chinese imports "could go up

very, very substantially, very easily." Elsewhere, China's People's Daily

criticised the U.S. as the chief "rule breaker" in the WTO.

- Bulls look to CNH6.9514, where the rate printed its YtD high on May 20. Bears

need a dip below CNH6.8979, where the rate bottomed yesterday, before targeting

CNH6.8867, which represents the 23.6% fibo retracement of the move from

CNH6.6771 to CNH6.9514.

- Official Chinese PMI prints are due on Friday.