USD/CNH prints fresh session highs of....>

CHINA YUAN: USD/CNH prints fresh session highs of CNH7.0684 in the wake of the

soft Chinese data, with the yuan also pressured by the surging oil prices on the

back of the attack on the major Saudi oil facilities over the weekend, owing to

China's crude oil importing requirements.

- Today's USD/CNY mid-point fixing was a touch firmer than exp. i.e. USD/CNY

fixed lower than exp. and the fix has finally moved off of the CNY7.08 handle.

Both these points go against recent trends, although the fix had little impact

on the yuan itself. Elsewhere, remember that the previously announced broad 50bp

RRR cut goes into effect today, with a focus on MLF operations (as some point to

the potential for lower rates as CNY265bn worth of MLF mature tomorrow) ahead of

Friday's Loan Prime Rate Fixing. Trade war matters of course continue to garner

attention, with junior level ministerial Sino-U.S. talks set to take place this

week.

- Initial resistance at Friday's high of CNH7.0686, with a break above switching

focus back to CNH7.1000. Conversely, Friday's low of CNH7.0312 provides the

initial level of support, with a break below exposing the 50-DMA at CNH7.0227.