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USDCNH continues to pull back from.......>

CHINA YUAN
CHINA YUAN: USDCNH continues to pull back from yesterday's highs bringing the
6.74 level back into focus. A close below here would extend the downtrend
towards the 200-dma which intersects at 6.7293. The NDF market is now pricing in
negligible weakness over the next 12 months with forward points at their lowest
levels since 2014 as fear over a devaluation continues to subside. 
- The yuan continues to shrug off the continued widening of US-China yield
spreads amid an increasingly dovish PBOC, which injected a record amount of
funds into its interbank markets yesterday and added more today. 

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