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USD/CNH has shed ~160 pips, sits at......>

CHINA YUAN: USD/CNH has shed ~160 pips, sits at CNH7.0927. The pair took a hit
as U.S. President Trump announced the delay of the upcoming round of China
tariffs hike. They will go into effect on Oct 15, rather than Oct 1, as a
"gesture of good will," "at the request of the Vice Premier of China, Liu He"
and due to the upcoming anniversary of the founding of the People's Republic.
- Trump's tweets come after China's publication of a list of U.S. goods to be
exempted from tariffs (anticipated by a tweet of Global Times' Editor-in-Chief).
The list covers $1.65bn worth of goods, but not the key agricultural products.
- Wednesday saw the rate respect a familiar range & finish near the neutral
levels. Aforementioned publication of tariff exemption list & the preceding
tweet applied some weight, but for the most part USD/CNH traded sideways.
- The PBoC set its USD/CNY mid-point at CNY7.0843 today, below RTRS & BBG exp.
- Bears look to extend losses through the 23.6% fibo retracement of the YtD
range, located at CNH7.0723. This would open up the lower 1.0% 10-DMA envelope
at CNH7.0639. Conversely, a jump back onto the CNH7.1000 handle would clear the
way to the Aug 6 high of CNH7.1400.

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