USD/CNH has slipped after the PBoC.......>

CHINA YUAN: USD/CNH has slipped after the PBoC fixed CNY on firmer side. The

rate deals at CNH7.0730, ~80 pips worse off. All eyes are on China's Q3 GDP & a

slew monthly econ indicators for Sep, due for release at the top of the hour.

- From a technical perspective, bears keep an eye on CNH7.0503, where the rate

printed its monthly low on Oct 14. A break here would bring the Sep 13 trough at

CNH7.0312 into view. Meanwhile, bulls look for a pullback above the

CNH7.1098/7.1161, which represent the 50-DMA/21-DMA. The region hosts two

intraday peaks from earlier this month, which adds to its significance.

- The latest downtick takes the pair to just ~60 pips off yesterday's lows,

touched after the spokesman for Chinese MOFCOM said that the U.S. and China are

working towards a phase 1 trade deal, while already discussing phase 2 of talks.

He noted that China's aim is to eliminate all tariffs and end the trade war.

- Also yesterday, however, Chinese Foreign Min confirmed that two U.S. citizens

running a biz. in China have been detained.

- Elsewhere, U.S. Pres Trump pledged to get the "phase one" deal signed quickly.