USD/CNH has ticked lower and last........>

CHINA YUAN: USD/CNH has ticked lower and last deals -68 pips at CNH7.0835.

China's industrial profits tumbled 34.9% Y/Y in March as local companies felt

the impact of the coronavirus pandemic. The PBoC fixed its central USD/CNY

mid-point at CNY7.0703, in line with expectations.

- Worth flagging a piece written by PBoC's Yi for the Economic Research Journal.

The Governor noted that the impact from the pandemic on China's economy should

be short-lived and the country should focus on maintaining ample liquidity and

extending targeted support to affected enterprises. Yi warned against "too

aggressive" stimulus, highlighting associated inflation risks.

- Bears look for a fall below the 50-DMA/psychological level at CNH7.0501/00 to

expose Apr 10 low of CNH7.0370, the key near-term support. Bullish focus is on

Apr 21 high of CNH7.1095 and a break here would bring Apr 2 high of CNH7.1423

into view. 

- Looking ahead, China reports its official PMI data on Thursday.