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USD/CNH has firmed up, drawing support...>

CHINA YUAN
CHINA YUAN: USD/CNH has firmed up, drawing support from broader risk aversion
provoked by the NYT story flagged before. Better than expected Q2 GDP data
failed to generate much fresh demand for the redback. Monthly economic activity
indicators were also, on balance, better than forecast, even as retail sales
lagged consensus. Today's PBoC fix didn't provide any material lead as it
matched BBG estimate.
- Xinhua ran comments from Chinese Pres Xi, who said that fundamentals driving
Chinese economic growth will not change. Xi reiterated his usual refrain re:
further reform & opening-up.
- The rate last trades +132 pips at CNH6.9954. A move through Jul 14 high of
CNH7.0256 would bring the 200-DMA at CNH7.0378 into view. Conversely, a dip
through Jul 9/yesterday's lows of CNH6.9809/07 would expose the lower 3.0%
Bollinger band at CNH6.9352.
- Not much left on Chinese docket this week, which shifts focus to next week's
monthly LPR fixing.

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