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USD/CNH slipped amid a better............>

CHINA YUAN
CHINA YUAN: USD/CNH slipped amid a better sentiment and last deals -41 pips at
CNH7.0893. The PBoC fix was roughly in line with expectations. Locally, the main
focus was on the PBoC's quarterly report on monetary policy implementation,
published on Sunday. China's central bank took note of unprecedented headwinds
facing the country and pledged to use "more powerful" policy measures to
mitigate the hit to domestic growth. Furthermore, the PBoC dropped the phrase
about "avoiding excess liquidity flooding the economy" from its report.
- Bears look for a fall past the 50-DMA, today at CNH7.0682, which limited
losses on Apr 30. The low of that day, located at CNH7.0527, provides the next
bearish target below. Bulls need to take out May 7 high of CNH7.1372 to bring
May 4 high of CNH7.1561 into play.
- China's economic docket features some important releases this week, with
inflation data coming up tomorrow. The publication of monthly activity
indicators is scheduled for Friday.

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