USD/CNH slipped at the re-open of........>

CHINA YUAN: USD/CNH slipped at the re-open of China's onshore markets, after the

PBoC fixed its central USD/CNY mid-point marginally below expectations, but has

pared losses since. The rate has been happy to hold a tight range, with little

in the way of potential catalysts so far. It sits at CNH7.0213, 16 pips below

neutral levels as we type. 

- Mutual Sino-U.S. sabre rattling continues, with BBG sources noting that some

White House advisors floated the idea of attacking the HKD's peg to USD. Other

reports pointed to fresh measures vs. Chinese officials & tech companies being

considered by the Trump administration.

- Spot USD/CNH probed the water below the key CNH7.0 level yesterday, in the

first foray under that figure since March. Bears look for a sustained move

through CNH7.0 mark & yesterday's low of CNH6.9966 before targeting Mar 16 low

of CNH6.9849. Bulls need a jump above the Jun 10 low/200-DMA at CNH7.0401/21 to

bring Jun 26 high of CNH7.0898 into view.

- Looking ahead, Chinese inflation data will take focus tomorrow.