USD/CNH Sub 200-day MA For First Time Since May

From highs just above 7.1650, USD/CNH fell sharply in NY trade, as US yields fell amid dovish Fed speak. We got close to 7.1310 and track just under 7.1330 in early Wednesday trade. CNH gained 0.37% for Tuesday's session, broadly in line with USD index losses (BBDXY off 0.41%). USD/CNY spot closed slightly higher at 7.1363, while the CNY NEER (J.P. Morgan index) fell 0.32% to 123.35, the third straight loss for the index.

• Tuesday's sharp correction lower has pulled USD/CNH under its simple 200-day MA (7.1369), for the first time since May of this year. We are already sub all key EMAs.
• Late July lows at 7.1161 may be the next downside target, before 7.1000 round figure support. Recent highs rest close to 7.1700.
• The local data calendar is empty until tomorrow's official PMI prints.
• Late yesterday President Xi emphasized the need to protect foreign companies' legitimate rights, as well as safe guarding intellectual property rights (see this BBG link). Premier Li made similar remarks (BBG).
• In the equity space, the Golden Dragon index fell 0.33% in US trade. To recap, the CSI 300 rose 0.19% in Tuesday onshore trade.