USD/CNH touched an early session high....>

CHINA YUAN: USD/CNH touched an early session high of CNH6.9146 as a risk-off

feel crept into the FX space, with some pointing to a RTRS report stating that

U.S. Pres Trump is "exp. to sign an executive order this week barring U.S.

companies from using telecom. equipment made by firms posing a national security

risk," which is thought to target China's Huawei. However, the pair has pulled

back from highs since and last trades at CNH6.9088, ~50 pips better off.

- The PBOC is exp. to set its yuan mid-point at CNY6.8791 today.

- Despite touching a fresh YTD high in early Asia-Pac trade yesterday, USD/CNH

retreated subsequently as U.S. Pres Trump struck an optimistic note re: trade

talks with China. The rate staged a recovery attempt into the European morning,

but stopped short of best levels and faded, finishing 82 pips lower on the day.

- Bulls look for upholding the recent uptrend, hoping for a break above the

aforementioned yesterday's high. Above here would expose CNH6.9248, which capped

gains last December. Meanwhile, bears look for a pullback below CNH6.8718, which

represents the 23.6% fibo retracement of the May range.

- All eyes are on Chinese activity data, due to be released at 0300BST.