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USDCNH has dipped back below 6.90........>

CHINA YUAN
CHINA YUAN: USDCNH has dipped back below 6.90 after failing to extend gains
following yesterday's breakout, suggesting a potential false bullish break. A
further drop below 6.88 would create some bearish momentum targeting the range
low just above 6.82. 
- Yesterday's recovery in the euro reduced some of the upside pressure on
USDCNH, while today's recovery in Hong Kong stocks is also helping the yuan. 
- The equity market will likely be a key driver of USDCNH, with any recovery in
stocks likely to benefit the yuan. It will be interesting to see how markets
respond on Monday following their week long holiday.   

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