USDCNH has broken below its 200dma as....>

CHINA YUAN: USDCNH has broken below its 200dma as well as briefly taking out its

Jan 11 low. A close below its 200dma at 6.7471 would be a bearish signal

suggesting a move down to the next round number at 6.70. 

- Yuan crosses are also firmer on the day with EURCNH breaking back below 7.70

to keep the focus lower. Uptrend support from the 2015 lows comes in at 7.5600.

- CNHKRW has held above its 200dma despite the won's recent surge, keeping the

uptrend intact. Bulls look for a clean break above 166.00 to reignite the

uptrend. 

- CNHJPY is down marginally on the day but remains just off monthly highs.

- Our take is that the yuan remains unloved and that the easing trend by the

PBOC is already priced in. That said, still-wide rate spreads between US and

China are the missing link and we would likely need to see higher Chinese yields

to justify a yuan bull market.