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USD/CNH last deals at CNH7.0375,.........>

CHINA YUAN
CHINA YUAN: USD/CNH last deals at CNH7.0375, almost unchanged on the day. A
modest, brief downtick was noted as China's CPI topped expectations & printed at
the highest level since Jan 2012, while PPI was less negative than projected.
- The PBoC fixed its central USD/CNY mid-point at CNY7.0400 today, in line with
estimates.
- Yesterday saw the rate add 123 pips as a combination of soft Chinese trade
data from over the weekend and worries re: U.S.-China trade talks lent support.
- Participants look for any convincing signals re: U.S.-China trade relations as
the Dec 15 tariff deadline approaches.
- Bears keep an eye on CNH7.0198, the 50% retracement of the Nov 7 - Dec 3 bull
market. A break here would expose the low of Nov 26 at CNH7.0091. On the flip
side, bulls look for a break above the trendline support-turned-resistance at
CNH7.0455 before setting their sights at the CNH7.0541 50-DMA.

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