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USD/CNH shot higher on Thursday as.......>

CHINA YUAN
CHINA YUAN: USD/CNH shot higher on Thursday as Sino-U.S. tensions flared up.
China confirmed that it plans to prepare legislation, which would effectively
crack down on Hong Kong's autonomy, which provoked the POTUS & U.S. lawmakers to
pledge imminent retaliation. Against this backdrop, jitters surrounding U.S.
"Delisting Bill", Huawei or the origins of the coronavirus outbreak became even
more acute.
- USD/CNH has shed 22 pips and sits at CNH7.1302, still not too far from
yesterday's best levels. A rally above May 18 high of CNH7.1448 would give bulls
a green light for targeting May 4 high of CNH7.1561. On the flip side, bears
look for a drop below May 20 trough/50-DMA at CNH7.0985/63, which would bring
May 8 low of CNH7.0812 into play.
- China's National People's Congress convenes today and the question everyone is
asking is whether off'ls will set a numerical GDP target for this year or opt
for a multi-year target/qualitative goal. China's plans for stimulating economic
recovery are another thing to watch.

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