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USD/CNH showed below the CNH6.9000.......>

CHINA YUAN
CHINA YUAN: USD/CNH showed below the CNH6.9000 level for the first time since
July 31, although the PBoC set its central USD/CNY mid-point slightly higher
than expected. The rate tracked a similar move in USD/Asia, with some pointing
to enthusiasm ahead of the imminent signing of U.S.-China phase-one trade deal,
scheduled for Wednesday.
- WSJ reported that the U.S. & China have agreed to restart semi-annual
meetings, separate from phase-two trade talks, to improve bilateral cooperation.
- USD/CNH last sits at CNH6.9010, 140 pips worse off. Bears now look for a dip
through the Jul 11 low of CNH6.8613, which would bring the Jul 1 low of
CNH6.8168 into view. Bulls need a firm push above CNH6.9000, which seems to be
capping recovery attempts, before targeting the 21-/200-DMAs at CNH6.9719/31. 
- Chinese data calendar is quite heavy this week. Highlights include trade
balance (Tuesday), as well monthly activity indicators and Q4 GDP (Friday).

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