USD/CNH has fallen ~120 pips on the......>

CHINA YUAN: USD/CNH has fallen ~120 pips on the back of a stronger yuan fixing

and firm domestic PMI data. The rate last deals at CNH6.7114.

- CNH has drawn early support from Chinese off'l PMI data, released over the

weekend. All three headline gauges advanced in Mar, with m'fing PMI moving into

positive territory, which the gov't attributes to its tax-cutting stimulus.

However, new export orders remained sub-50, amidst softening global demand.

Elsewhere, Caixin m'fing PMI printed at 50.8 vs. exp. of 50.0 & the prior 49.9.

- Optimism re: Sino-U.S. talks has also aided CNH, with Chinese VP Liu set to

visit Washington this week. On Friday, an ex-PBOC off'l told MNI that both

parties may sign off on a bilateral trade deal by the end of June.

- Worth noting from today on Chinese bonds are included in the Bloomberg Global

Aggregate Bond Index, weighed at 6.03% of the index. Several banks estimate that

this will bring ~$120-$150bn from index-tracking funds to the Chinese FI market.

- Bears look for a slide through the CNH6.7000 figure towards the down trendline

from Dec 24 at CNH6.6969, breached this month. Conversely, bulls look for a

rebound above the 21-DMA at CNH6.7180, located around the opening levels.