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USD/CNH last seen at CNH6.9293, ~75......>

CHINA YUAN
CHINA YUAN: USD/CNH last seen at CNH6.9293, ~75 pips worse off, with a slightly
stronger than exp. fix from the PBoC lending support to the yuan. The PBoC has
also decided to inject CNY80bn via reverse repos today.
- China released a white paper re: trade negotiations with the U.S. on Sunday,
where it blamed U.S. President Trump's administration for the breakdown in talks
and noted that the latest U.S. tariffs on China "will only make things worse for
all sides." Elsewhere, China has opened an investigation into FedEx, with the
move widely interpreted as a warning in the wake of U.S. actions vs. Huawei.
- The weekend also saw some hard-line trade rhetoric from U.S. Pres Trump.
- Friday saw the rate add 77 pips on the day, amidst broader risk-off flows.
- USD/CNH has consolidated within CNH6.9000-6.9500 after rallying sharply in the
first half of May. Bulls look for a lift through CNH6.9575, where the rate
peaked on Friday, towards the May 20 YtD peak of CNH6.9514. Bears eye
CNH6.9246-6.9207, which limited losses on May 17-22 and again on May 29-31.
Below here opens the 21-DMA at CNH6.8985.
- The initial focus falls on China's Caixin m'fing PMI, due at 0245 BST.

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