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USD/CNH last trades at CNH6.8095, ~20....>

CHINA YUAN
CHINA YUAN: USD/CNH last trades at CNH6.8095, ~20 pips higher. The PBOC set
today's yuan fixing vs. the dollar at CNH6.7665 vs. the RTRS est. of CNH6.7683.
- The pair eased off in yesterday's Asia-Pac hours on the back of stronger than
exp. yuan fixing, before weak Chinese trade data forced USD/CNH to tick away
from lows. The pair then extended gains through the rest of the day, as
conflicting signals re: Sino-U.S. trade relations fuelled uncertainty.
- Worth noting that at a campaign rally today U.S. Pres Trump said that China
"broke the deal" and "will be paying for it." Trump's comments sent USD/CNH to a
fresh session high, but the move has been retraced.
- Yesterday's higher close allowed bulls to uphold the upside momentum, drawing
their attention to the 200-DMA at CNH6.8260. Above here would expose the
measured target at CNH6.8296, after the pair charted a triple bottom pattern in
the recent months. On the downside, bears need a fall through CNH6.8000 before
attempting a run at the 100-DMA, located at CNH6.7586.
- Chinese CPI & PPI figures are due shortly. Also worth reminding that the 11th
round of Sino-U.S. trade talks kick off today.

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