USDCNH continues to hone in on the.......>

CHINA YUAN: USDCNH continues to hone in on the 6.98 level as bulls steadily

erase the losses seen at the start of the month to bring the key 7.0 level into

play. The pair last trades at 6.9668, with the fix having little impact on price

action.  

- Renewed fears over U.S. trade policy re: auto tariffs & fighting China's IP

theft via export controls did not help the yuan yesterday, which was also

pressures by hawkish comments from Fed's Daly.

- Meanwhile, PBOC advisor Ma Jun told MNI in an exclusive interview yesterday

that the Chinese authorities have switched to stabilising the economy's leverage

levels, rather than pursuing a rapid decrease in debt ratios.

- While US-China rate spreads appear to have stabilised, they remains at an

elevated level and suggest further fundamental upside pressure on the pair.