USD/CNH last deals at CNH6.8809, ~20.....>

CHINA YUAN: USD/CNH last deals at CNH6.8809, ~20 pips higher on the day. The

PBoC set its central yuan mid-point vs. USD at CNY6.8677 today, roughly in line

with expectations.

- China's Q2 GDP and June economic activity indicators are expected at the

bottom of the hour.

- RTRS reported that U.S. companies may resume new sales to Huawei as soon as

within 2 weeks.

- The rate added 27 pips on Friday, as the dollar retained its softer feel

inspired by dovish Fedspeak. As a reminder, Chinese trade surplus, revealed on

Friday, was wider than expected, but underpinned by softer imports and exports. 

- The initial bullish target is provided by CNH6.8936, which represents the

23.6% fibo retracement of the rally from the YtD low to the YtD high. Above

opens the CNH6.9000 figure, which has proven hard to overcome this month. The

fact that the 50-DMA intersects right at CNH6.9000 today only adds significance

to the level. Bears need a fall through the Jul 11 low of CNH6.8613 before

attempting a move at the 38.2% retracement of the YtD range at CNH6.8509.