USD/CNH last deals at CN6.7184, a mere...>

CHINA YUAN: USD/CNH last deals at CN6.7184, a mere 5 pips lower on the day,

after a slightly stronger PBOC yuan fixing at CNH6.7088 vs. the prev. CNH6.7110.

- Muted reaction was noted upon the release of Chinese inflation data. CPI

accelerated to +2.3% Y/Y from +1.5%, while PPI printed at +0.4% vs. the prior

0.1%, with both metrics meeting forecasts.

- Elsewhere, Chinese equities slid into negative territory.

- Worth noting before the Asia-Pac hours U.S. Tsy Sec Mnuchin said that

Washington and China have reached agreement over the trade deal enforcement

mechanism.

- The last month or so has seen USD/CNH consolidate within the

CNH6.7000-CNH6.7400 range (with a few brief breaches of these boundaries). At

typing, the rate is flirting with its 21-DMA at CNH6.7181, and a clean break

above would bring the 50-DMA at CNH6.7305 into play. Meanwhile, bears look for a

fall through the Apr 5 monthly low of CNH6.7034, towards the aforementioned

CNH6.7000 mark.

- Chinese trade balance data takes focus on Friday.