USD/CNH last deals at CNH7.0428, 36 pips......>

FOREX: USD/CNH last deals at CNH7.0428, 36 pips worse off. A softer than

expected PBoC fix triggered an uptick, which was promptly erased as the central

bank announced that it will offer CNH30bn worth of bills in Hong Kong next week.

A strong Caixin m'fing PMI print has applied fresh pressure to USD/CNH as the

index unexpectedly rose to 51.7 from 51.4, indicating the fastest pace of

expansion since Feb 2017. It is worth highlighting, however, that all those

moves have been contained to a tight range.

- The Central Committee of the Communist Party of China concluded its four-day

closed-doors plenum. Party off'ls discussed the HK situation, pledging to

"establish and perfect the legal system and enforcement mechanisms" in the city.

- The rate charted a Doji yesterday, with a jump to intraday highs noted as BBG

reported that China has doubts re: signing a long-term trade pact with Trump.

- The pair dropped below the Sep 13 low of CNH7.0312 yesterday, but failed to

challenge the 100-DMA, today at CNH7.0256. A fall under the 100-DMA would play

into the hands of bears. Bulls look for a break above CNH7.0503, the low of Oct

14, before turning focus to the 21-DMA at CNH7.0827.