USD/CNH last trades at CNH6.7188, ~40....>

CHINA YUAN: USD/CNH last trades at CNH6.7188, ~40 pips worse off.

- This move came in spite of a softer than expected yuan fixing from the PBOC,

with today's USD/CNY fix set at CNY6.7098 vs. the RTRS forecast of CNY6.7007.

- Ministerial-level Sino-U.S. trade negotiations resume this week, as U.S. TR

Lighthizer and U.S. Tsy Sec Mnuchin are set to travel to Beijing for meetings

starting on March 28, ahead of Chinese VP Liu's visit in Washington on April 3.

Over the weekend, the FT reported that the two sides remain divided over Chinese

curbs on digital trade.

- PBOC Gov Yi spoke over the weekend, arguing for a greater transparency and

openness of Chinese financial markets, while various other policymakers

reiterated their belief in the country meeting its 2019 economic targets.

- The rate sticks to the lower end of its YTD range and is flirting with the

down trendline from Dec 21, located at CNH6.7174. A clean break below that level

would open up the 21-DMA at CNH6.7101, which proved key in the recent weeks.

Bulls look for consolidation above the aforementioned trendline before

challenging the CNH6.7326-CNH6.7374 region, which capped gains on Mar 7-12.