USD/CNH has been offered, punching.......>

CHINA YUAN: USD/CNH has been offered, punching through yesterday's lows. The

PBoC fix roughly matched expectations, but above-forecast official PMI figures,

released out of China, applied some pressure to the pair.

- The yuan has managed to register gains despite tensions surrounding Hong Kong

Security Bill, approved by China's legislature in a unanimous vote today. The

Global Times reported that the legislation will take effect on Jul 1, with other

source reports suggesting that the law will be revealed to the public via Xinhua

news agency this afternoon. China's moves vs. HK have further escalated tensions

with the U.S., which stripped the city off some special trading privileges.

- USD/CNH sits -112 pips at CNH7.0652 at typing. The initial bearish target is

provided by Jun 24 low/200-DMA at CNH7.0455/47 and a break here would shift

focus to Jun 10 low of CNH7.0401, a key near-term support. Bulls look for a

rebound above Jun 26 high of CNH7.0898, which would give them a green light for

targeting Jun 15 high/50-DMA at CNH7.0974/7.1012.

- China's Caixin M'fing PMI is due for publication tomorrow, with Caixin

Services & Composite PMIs coming up on Friday.