USD/CNH has weakened past the Jul........>

CHINA YUAN: USD/CNH has weakened past the Jul 11/Friday's lows at CNH6.8613/

6.8580, highlighted in the previous bullet, showing under a key support zone.

The rate lost ground after a firmer than expected PBoC yuan fix, which was also

the strongest one in six months. Elsewhere, China's central bank left its 1- and

5-Year LPR unchanged. USD/CNH extended losses upon the breach of CNH6.8580 and

currently trades at CNH6.8523, 152 pips worse off on the day.

- With the rate hovering just above CNH6.8500, a fall through the figure would

encourage bears to focus on the Jul 1 low of CNH6.6168. Should the latter level

give way, bears could target the CNH6.8000 mark. It is worth keeping an eye on

the 50- and 200-DMAs, as their spread have been narrowing over the recent months

and a potential "death cross" is on the cards. Meanwhile, bulls look for a jump

back onto the CNH6.9000 handle.