USD/CNH has wiped out earlier losses.....>

CHINA YUAN: USD/CNH has wiped out earlier losses and moved into positive

territory. The yuan stood resilient in early trade, resisting broader risk-off

flows seen as oil prices crashed, while coronavirus worry increased higher

still. The yuan may have drawn support in early trade from the moderation in the

increase in local Covid-19 case count. China declared just 40 new cases, with 36

of them located in Hubei & the remaining four being imported cases. However, the

intensification of broader risk-off flows has pushed USD/CNH off lows & into

positive territory.

- The PBoC set its central USD/CNY mid-point at CNY6.9260 vs. RTRS est. of

CNY6.9228 & BBG est. of CNY6.9263.

- USD/CNH sits +55 pips at CNH6.9379. Bulls need a break above the 50-DMA/Mar 6

high at CNH6.9621/26 to bring the CNH7.0 mark into play. Bears would be pleased

by a drop below the 76.4% retracement of the Jan 20 - Feb 21 rally at CNH6.8956.

- As a recap, China's trade balance flipped to a deficit of $7.1bn in the

Jan-Feb period, amid a larger than expected slump in exports & a more modest

than forecast fall in imports. Inflation data takes the focus tomorrow.