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CHINA YUAN: USDCNH continues to trade in a tight range around 6.7000, with the
yuan failing to mount a notable comeback despite some broad-based dollar
- ST support comes in at yesterday's low of 6.6830, a break of which would argue
for a potential reversal pattern. A break of yesterday's high of 6.7245 would
suggest a continuation of the broader uptrend.
- The combination of a weak yuan vs the USD and the recent strength in the euro
has seen the yuan's trade-weighted index hit a new low for the cycle.