USD/CNH has shed 72 pips & sits at.......>

CHINA YUAN: USD/CNH has shed 72 pips & sits at CNH6.9775 when this is being

written. The PBoC fix was at CNY6.9897, in between BBG & RTRS estimates.

- With the rate still trapped between its 50- & 100-DMAs, bears look for a drop

below the former, which intersects at CNH6.9716. A clean breach of the level

would expose the Feb 6 trough at CNH6.9573. Bulls need a push above the

100-DMA/mid-point of the Sep 3 - Jan 20 fall/Feb 3 & 4 highs, clustered in the

CNH7.0181-7.0231 area.

- China reported 2,478 new coronavirus cases, which takes the total count to

42,638. The no. of deaths rose by 108 to 1,016 & recoveries are at 3,996.

- An Apple HK reported noted that the "Chinese NHC has changed their definition

of #WuhanCoronavirus "confirmed case" in their latest guidelines dated 7/2.

Patients tested positive for the virus but have no symptoms will no longer be

regarded as confirmed. This inevitably will lower the numbers."

- CCTV reported that China's Hubei has sacked top provincial health off'ls.

Elsewhere, state media circulated photos of Pres Xi visiting a Beijing hospital.

- No need to remind that coronavirus updates remain front and centre.