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USDCNH has dropped back from daily highs to...>

CHINA
CHINA: USDCNH has dropped back from daily highs to trade at 6.8080 currently.
The pair holds below support-turned-resistance at the 21-dma as the 55-dma at
6.7242 comes into focus. 
- This comes despite a renewed drop in 2-year interest rate swaps, which have
edged down 1bps to trade at 2.91%. Yields are being capped by the 55-dma at
2.9635.
- Chinese stocks are coming under pressure as the 55-dma caps gains in the HSI
and the CSI 300 fails to overcome the July 10 highs at 3424.
- Overall the process of Chinese assets bottoming out remains in place but
headline risk is likely to keep market volatility elevated. 

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