USD/CNH trades at CNH7.0692, ~40 pips....>

CHINA YUAN: USD/CNH trades at CNH7.0692, ~40 pips lower on the day. The PBoC set

its USD/CNY mid-point in between the estimates from RTRS and BBG.

- The rate added 120 pips yesterday. A broader appetite for safe havens favoured

USD, while the main focus was on U.S. VP Pence's speech re: China policies.

Pence criticised Beijing's handling of the HK situation, but also called for a

rapprochement on the trade front. Elsewhere, China was said to be aiming to buy

$20bn of U.S. farm products in a year, if a ltd deal with the U.S. is signed.

- Bulls look for a rally above the round figure/50-DMA at CNH7.1000/1115. Bears

eye the trendline support at CNH7.0625, ahead of the Sep 13 low of CNH7.0312.

- U.S. TR Lighthizer, U.S. Tsy Sec Mnuchin and Chinese VP Liu will speak on the

phone today, with bilateral junior-level talks touted next week.

- The Central Committee of the Communist Party of China will hold its plenary

meeting for the four days starting Monday. The plenum is a major policy-making

body, which brings together top party off'ls from across the country. 

- China's industrial profits hit on Sunday before official PMI data and Caixin

m'fing PMI take focus on Thursday and Friday respectively.