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USD/CNH trades marginally below..........>

CHINA YUAN
CHINA YUAN: USD/CNH trades marginally below neutral levels, last -49 pips at
CNH7.1283. China released its official PMI data over the weekend, with M'fing
PMI unexpectedly deteriorating from 50.8 to 50.6. However, Caixin M'fing PMI,
published today, returned to expansion, printing at 50.7 vs. prev. 49.4 & exp.
of 49.6. Meanwhile, the weekend saw China and the U.S. continue to trade barbs,
but it seems focus has already turned to the lack of any notable measures
against China during Friday's presser with U.S. Pres Trump.
- The PBoC set its central USD/CNY mid-point at CNY7.1315, marginally below the
BBG estimate of CNY7.1323.
- As USD/CNH has fallen past Friday's lows, bears look for a deeper retreat
through the 50-DMA at CNH7.1044 & the low of May 20 at CNH7.0985. On the flip
side, bulls target the record high of CNH7.1965, revisited on May 27.
- China's Caixin Services & Composite PMIs are due Wednesday.

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