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USDCNH continues to edge lower despite...>

CHINA YUAN
CHINA YUAN: USDCNH continues to edge lower despite rising from its daily lows to
sit at 6.8880. The 21-dma is acting as resistance, capping gains in recent days
to keep the focus on the downside. Up trendline support from the Dec 4 lows
comes in at 6.8740, below which would build downside momentum towards the Dec 4
lows. 
- The pair is trading in lock step with US yields for now as attention turns to
Wednesday's Fed meeting. 
- US-China 2year interest rate swaps spreads continue to edge lower despite the
recent resumption of declines in Chinese rates. Spread last trades at just 1bps
near 3 month lows. 

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