USD/CNH has been offered as the..........>

CHINA YUAN: USD/CNH has been offered as the broader USD weakness took some

weight from off the pair. Disappointment w/lack of clarity on stimulus measures

from U.S. off'ls has been the dominant theme, with the rapid increase in U.S.

coronavirus case count further damaging USD. By contrast, China added just 24

new cases today, with all of the 22 new deaths occurring in Wuhan, Hubei. The

only interruption in USD/CNH sell-off was a spike higher in reaction to a weaker

than expected PBoC fix, which wiped out earlier losses. However, selling resumed

promptly thereafter, taking the rate to fresh session lows.

- The authorities of several Chinese provinces have relaxed restrictions imposed

on local populations to contain the epidemic. Hubei gov't said that sectors such

as public transport & producers of medical supplies & daily necessities will be

allowed to return to work, while others can seek approval to resume operations.

- USD/CNH last sits -68 at CNH6.9570, with downside focus still on CNH6.9049,

the low of Mar 9. On the flip side, a return above the 50-DMA at CNH6.9619 would

expose the 38.2% retracement of the Sep 3 - Jan 20 bear mkt at CNH6.9797.