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USD/CNH has slid ~100 pips so far and....>

CHINA YUAN
CHINA YUAN: USD/CNH has slid ~100 pips so far and last trades at CNH6.7848.
Stronger than exp. central yuan fixing lent support to CNH before soft Chinese
trade data forced USD/CNH to tick away from lows. Trade balance printed at
+$13.84bn vs. the prior +$32.67bn & exp. of +$34.56, with exports providing
disappointment & imports topping forecasts.
- Late on Tuesday, the PBoC announced that it will sell CNY10bn worth of 91-day
bills & CNY10bn of 1-Year bills in Hong Kong on May 15, which is viewed as an
attempt to tie up offshore liquidity.
- Yesterday's yuan bullet highlighted that USD/CNH charted a triple bottom
pattern before breaching the neckline resistance at CNH6.7500 on Monday. Bulls
need a break above yesterday's high of CNH6.8023 to maintain momentum, before
challenging the 200-DMA/measured target at CNH6.8262/96. Conversely, bears look
for a pullback through the 100-DMA at CNH6.7592 & the aforementioned CNH6.7500.
- Chinese inflation data comes out tomorrow. Focus remains on any fresh news re:
Sino-U.S. trade matters, with the 11th round of trade talks starting on Thurs.

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