USD/CNH has rallied ~95 pips and last....>

CHINA YUAN: USD/CNH has rallied ~95 pips and last trades at CNH6.8745, supported

by a slightly weaker than expected fixing from the PBoC, as well as the fact

that the mid-point was set higher than Friday's.

- Worth noting the central bank skipped open market operations today, saying

that current banking liquidity is at a reasonable, ample level.

- Several Chinese officials spoke ahead of the G20. Commerce Vice-Min Wang noted

that U.S. and Chinese teams are having discussions re: next steps in bilateral

trade talks, while Asst Foreign Min Zhang said both sides are in touch re: the

details of the Xi-Trump meeting. Wang condemned unilateralism & protectionism,

pointing to G20 & WTO as desirable forums for resolving trade tensions.

- On the technical front, bulls look for a break above Friday's peak at

CNH6.8801, which has proven resilient today. A breach here would open up the

psychological CNH6.9000 level, followed by the 21-DMA at CNH6.9172. Conversely,

bears look for a dip through the 50-DMA and Jun 20 low, situated at CNH6.8545

and CNH6.8480 respectively.

- Focus this week turns to the G20 summit, scheduled for Jun 28/29.