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USD/CNH last trades at CNH6.8931, just...>

CHINA YUAN
CHINA YUAN: USD/CNH last trades at CNH6.8931, just 15 pips worse off, in spite
of broader USD weakness stemming from yesterday's dovish FOMC rhetoric & a
marginally stronger than exp. fixing from the PBoC. That being said, the rate
managed to touch the lowest level in more than a month earlier in the session.
- The PBoC set its central yuan mid-point at the monthly low of CNY6.8805.
- U.S. President Trump told Fox today that it is important to have a good
relationship with China and Russia. Elsewhere, Chinese Pres Xi has left for a
state visit in North Korea.
- Today marks the third consecutive day when USD/CNH registers a lower high and
lower low. Worth noting, however, that the rate has charted a golden cross
recently (50-DMA above 200-DMA). Bears look for a return below CNH6.8883, where
the rate bottomed yesterday, before looking to a further dip through the May
10/9 highs of CNH6.8648/36. Meanwhile, bulls look for a breach of the
psychological CNH 6.9000 barrier before targeting the 21-DMA, which kicks in at
CNH6.9237.

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