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USD/CNH trades comfortably within........>

CHINA YUAN
CHINA YUAN: USD/CNH trades comfortably within yesterday's range, despite ticking
higher on the back of a weaker than expected PBoC fix. Tensions between the U.S.
and China remain under scrutiny, with latest headline flow pointing to a
potential blacklisting of TikTok by the U.S., which comes after U.S. FCC took
action against Chinese tech giants yesterday.
- Worth re-flagging our latest China exclusive, which noted that Beijing is
likely to ease off its fiscal stimulus in the second half of the year.
- USD/CNH sits at CNH7.0024, 81 pips better off as we type. Continued rally
above Jul 14 high of CNH7.0256 & Jul 8 high of CNH7.0296 would open up the
200-DMA at CNH7.0373. Bears look for a pullback under Jul 16/9/15 lows of
CNH6.9811/09/07, which would expose the lower 3.0% Bollinger band at CNH6.9306.
- As a reminder, the PBoC will announce its monthly LPR fixings, due Monday.

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