USD/CNH has broken above its 50-DMA at...>

CHINA YUAN: USD/CNH has broken above its 50-DMA at CNH6.7406, aided by a softer

yuan fixing, and last trades at CNH6.7445, ~65 pips better off.

- The rate has ebbed off of highs, with the move likely supported by a RTRS

story, citing U.S. off'ls as saying that the U.S. and China "have made progress

in all areas of trade talks;" the piece does note that sticking points remain.

As a reminder, U.S. TR Lighthizer and U.S. Tsy Sec Mnuchin have arrived in

Beijing for another round of bilateral trade negotiations.

- Chinese Premier Li pledged that China will implement financial opening

measures this year. He also noted a recovery in Chinese economy, but added that

growth may experience some fluctuations this year, and reiterated that the

country will refrain from flood-like stimulus.

- Consolidation above the aforementioned 50-DMA would encourage bulls to look

for a breach of CNH6.7500, which has capped today's gains. The pair has operated

below the figure since mid-February. Meanwhile, bears look to CNH6.7350, where

the rate bottomed earlier today, and which acted as a technical

support/resistance level several times since late January.