USD/CNH last seen at CNH6.7077, 50.......>

CHINA YUAN: USD/CNH last seen at CNH6.7077, 50 pips worse off. Stronger than

exp. Chinese data put a fresh bid into the yuan, allowing the pair to extend its

earlier losses. As a reminder, GDP growth held at +6.4% in Q1 vs. expectations

of a slowdown to +6.3%. On the monthly economic data front industrial production

was particularly strong, rising by 8.5% in Y/Y terms during March vs. a median

exp. of +5.9%, while retail sales rose by 8.7% vs. exp. of 8.4%.

- The PBOC's yuan fixing vs. USD came at CNH6.7110 vs. yesterday's CNH6.7097 &

the RTRS estimate of CNH6.7124.

- Worth noting on Tuesday Chinese FinMin said that local gov't bond issuance hit

a record high in Q1, as authorities accelerated borrowing to boost the economy.

For the full story see MNI Main Wire at 13:07 BST 04/16.

- April has seen USD/CNH operate within CNH6.7022-6.7319, with the rate

gradually ebbing towards the lower end of the range. A dip through Monday's

monthly low, followed by a breach of CNH6.7000 would bring the Mar 21 YTD low of

CNH6.6704 into play. Conversely, bulls need to clear the 21-DMA, located at

CNH6.7175, before challenging the monthly high touched on Apr 2.