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USD/CNH has moved back above CNH6.71,....>

CHINA YUAN
CHINA YUAN: USD/CNH has moved back above CNH6.71, last dealing ~150 pips or so
higher at CNH6.7175, although the relatively narrow recent range remains in
play.
- The yuan, in addition to Chinese equities, has struggled after the Politburo
meeting, held last Friday, sent a strong signal for further reform measures to
be rolled out over the medium/long term, instead of relying on short-term
stimulative measures.
- China's CSI 300 trades ~2.0% lower on the day.
- Chinese 10-Year yields have edged back below 3.40%, although the pullback
still looks relatively shallow on a chart at current levels, given the recent
uptick in yields.
- USD/CNH's 50-DMA, located at CNH6.7204 provides initial resistance, with any
clean break opening up a move higher towards the recent intraday peaks. Initial
support is located at the April 15 low of CNH6.7022.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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