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USD/CNH has shed ~220 pips and last......>

CHINA YUAN
CHINA YUAN: USD/CNH has shed ~220 pips and last sits at CNH6.9271, with the yuan
aided by a slightly stronger yuan fix from the PBoC, as well as the latest
reports stating that China remains concerned with the rate nearing CNH7.0000.
- Worth noting the Global Times has singled out the yuan exchange rate as the
most important problem facing China, while ex-PBOC off'l Sheng wrote in China
Business News that Beijing should avoid weakening yuan past CNY7.0000 vs. USD.
- Elsewhere, the SCMP cited Chinese analysts as saying that the U.S.-China trade
standoff "could last for some time," as Beijing feels in no rush. This comes
after on Friday CNBC sources said that "U.S.-China trade talks have stalled."
Meanwhile, the weekend saw Google suspend some of its business with Huawei,
after the Chinese tech giant was hit by formal measures by the U.S.
administration on Thursday.
- Bulls look for a break above the 2018 high of CNH6.9805, touched on Nov 1,
which would draw even more interest to the pivotal CNH7.0000 level. Meanwhile,
below CNH6.9000 would expose the 23.6% fibo retracement of the move from
CNH6.6764 to CNH6.9514, located at CNH 6.8865.

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