USD/CNH has slipped as the greenback.....>

CHINA YUAN: USD/CNH has slipped as the greenback trades on a softer footing in

the run-up to the Fed's monetary policy decision. Chinese inflation data was in

focus, with both CPI and PPI missing expectations. CPI inflation slowed to +2.4%

Y/Y from +3.3% vs. exp. of +2.7%, while the factory-gate equivalent came in at

-3.7% Y/Y, indicating a deepening deflation. Meanwhile, the PBoC fix was just

very marginally weaker than est. - the deviation was too small to move USD/CNH.

- The rate sits -80 pips at CNH7.0686 at typing. Further losses past the nearby

100-DMA at CNH7.0578, Jun 8 low of CNH7.0544 & Apr 30 low of CNH7.0527 would

clear the way to Apr 10 low of CNH7.0370. On the flip side, a jump above the

round figure/50-DMA at CNH7.1000/21 would open up Jun 4 of CNH7.1337.