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USDCNH has dropped back to 6.8230 after.......>

CHINA
CHINA: USDCNH has dropped back to 6.8230 after yesterday's failed attempt to
break above key resistance, now at 6.8450. 
- The yuan's slight strength is coming amid heaving selling in Chinese stocks,
with both mainland and Hong Kong indices continuing to weaken after breaking key
supportive levels yesterday. The rolling yuan-equity correlation is now deeply
negative.
- Yuan strength is coming in spite of the renewed weakness in rate expectations,
with the 1-year swap falling back to cyclical lows at 2.76%, which should be
yuan negative going forward. 

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