USD/CNH last trades at CNH6.7173, ~90....>

CHINA YUAN: USD/CNH last trades at CNH6.7173, ~90 pips lower on the day.

- The rate oscillated around the opening levels before slumping on the back of

an FT source story, which stated that "top U.S. & Chinese officials have

resolved most of the issues standing in the way of a deal to end their

long-running trade dispute." Worth highlighting the story still pointed at some

outstanding bones of contention, including enforcement mechanisms.

- Subsequent release of strong Caixin services & composite PMIs allowed the rate

to touch fresh intraday lows of CNH6.7107, before it ticked away from worst

levels. The services gauge touched the best levels since Jan 2018.

- As a reminder, Chinese VP Liu is visiting Washington for trade talks.

- Chinese Foreign Min Wang said that Beijing is in Belt & Road talks with

several EU countries and Chinese Premier Li will visit Europe on Apr 8-12.

- The rate has recently moved away from the channel resistance-turned-support

breached on Mar 22, located at CNH6.6904. A lift through the 21-DMA at CBH6.7199

would bring the Mar 28 monthly high of CNH6.7500 into play. Meanwhile, a dip

towards the aforementioned channel would let bears regain some momentum.