USD/CNH trades at CNH7.0684, 100 pips....>

CHINA YUAN: USD/CNH trades at CNH7.0684, 100 pips better off as we type, after

staging a round trip from a session high of CNH7.0882 on the back of comments

from White House advisor Peter Navarro. 

- The rate shot higher as Navarro said that the trade deal with China is over,

adding that the "turning point" was when a Chinese delegation "came here on Jan

15 to sign on that trade deal, and that was a full two months after then knew

the virus was out and about". Earlier, U.S. Tsy Sec Mnuchin told Fox News that

"there may be a time when we have decoupling" from China. He revealed that there

is "energy" within the Trump administration to hold China accountable for its

lack of transparency during the initial coronavirus outbreak.

- USD/CNH has wiped out most of those gains as Navarro told the WSJ that his

comment was "not as it seems" and he was making a broader point about trust.

- A renewed push through Jun 15 high/50-DMA at CNH7.0974/7.1021 is needed to

expose Jun 4 high of CNH7.1337. Conversely, bears look for a fall through the

200-DMA at CNH7.0453 & Jun 10 low of CNH0401.

- China reports final Q1 BoP current a/c balance tomorrow.