USD/CNH Shows At Worst Levels Since January

Spot USD/CNH dived through the CNH6.9 mark and probed the water under Aug 19 multi-month low of CNH6.8979, before backing off worst levels. The rate sits -52 pips at CNH6.9019 at typing.

• Broader USD weakness, linked to a combination of yesterday's impetus & light risk-on flows provoked by well covered Pfizer headlines, has helped the pair ebb lower.
• China confirmed that it wants to arrange a review of its phase-one trade deal with the U.S. soon after White House adviser Kudlow noting that the USTR is happy with bilateral progress on trade matters.
• Elsewhere, Chinese FinMin Liu wrote that new rules in China's budget law will focus on managing risks in local government finances.
• Descending trendline drawn off Jun 10 low, intersecting at CNH6.8922 today, has cushioned losses so far. A clean break here would open up the lower 3.0% Bollinger band at CNH6.8567. Conversely, a break above Aug 19 high of CNH6.9248 would bring Aug 13 high of CNH6.9535 into play.
• Domestic industrial profits are the only point of note on China's data docket next week.