USD/CNH last trades at CNH6.7174, ~40....>

CHINA YUAN: USD/CNH last trades at CNH6.7174, ~40 pips better off on the day,

after the PBOC set the yuan central parity at CNH6.7088, roughly in line with

exp., vs. the prev. CNH6.7167.

- The pair closed ~80 pips lower on Friday, as a move to intraday highs of

CNH6.7324 in early Asia-Pac trade was followed by a pullback on the back of a

move higher in Chinese equities, possibly stemming from Chinese fiscal matters.

Data-inspired USD weakness might have also weighed on the rate later in the day.

- Worth mentioning over the weekend the SCMP cited sources stating that the

summit between U.S. President Trump and Chinese President Xi to end the ongoing

trade war may be postponed to June.

- USD/CNH continues to operate towards the lower end of its YTD range, and

approaches its 21-DMA at CNH6.7156 at writing. A clean break below would open up

the CNH6.7011-CNH6.7004 area, which limited losses last Wednesday and Thursday.

Conversely, bulls eye the CNH6.7326-CNH6.7374 region, which capped gains on Mar

7-12.