USD/CNH has lost some altitude and.......>

CHINA YUAN: USD/CNH has lost some altitude and remains in negative territory

despite moving away from an earlier low of CNH6.9823. The rate now sits -56 pips

at CNH6.9873. Over the weekend, China's state TV cited head of a Wuhan hospital

as noting that the epidemic may have reached a turning point. Meanwhile, China's

FinMin Liu wrote in a CPC magazine Qiushi that the gov't will implement

corporate tax cuts twinned with the reduction of unnecessary expenses. Liu

acknowledged the fiscal strain associated with additional stimulus, but argued

that "targeted and phased" measures are needed to shore up the economy.

- BBG covered a report from the CSJ suggesting that the PBoC will conduct MLF at

a lower rate this week (nothing new, as outlined in an earlier bullet).

- China reported 2,048 new coronavirus cases & 105 new fatalities today.

- A fall under the 50-DMA at CNH6.9665 would open up the lows of Feb 12/6 at

CNH6.9575/73. On the flip side, a jump above the 200-DMA would encourage bulls

to target the Feb 10 high/100-DMA at CNH7.0124/25.

- Participants await the monthly LPR fixing, scheduled for Thursday.