USD/CNH rate sits broadly flat on the......>

CHINA FX: USD/CNH rate sits broadly flat on the day, with CNH pulling back some

of the minor strength seen during Asia-Pacific hours. Having topped out at

Cnh6.9465 (shy of the cycle highs printed Monday at 6.9514) CNH received a minor

boost as the PBoC announced they are to issue new CNY bills in Hong Kong in the

near-term. While this operation has been held before, it may pullback onshore

liquidity somewhat, hence strengthening the currency. There have been few

developments overnight after the US granted a reprieve for the previously

targeted Huawei supply chain, but various international reports continue to

highlight the anti-US sentiment in China, showing the country's support for the

government's defiance of Trump's threats. This hasn't been repeated in the US,

with companies including Nike and Adidas calling China tariffs "catastrophic" in

a letter to the US leader.

-Implied vols continue to retreat (particularly evident in short-term contracts)

although the 3m measure holds close to cycle highs printed yesterday. USD/CNY

upside remains popular in options space, with over $3 bought in calls for every

$1 in puts so far Tuesday.