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USDCNH has extended its decline today....>

CHINA YUAN
CHINA YUAN: USDCNH has extended its decline today dropping below yesterday's low
to trade at 6.7810 last. Uptrend support from the Jan 11 lows comes in around
6.7730. The yuan strength comes amid broad based greenback weakness but the yuan
is outperforming, with EURCNH edging lower towards the key 7.70 level.
- The yuan seems to be shrugging off intermittent negative headlines re trade
talks suggesting the path of least resistance for the currency is stronger. We
would need to see some support provided in the form of higher Chinese rates
though to suggest a much further yuan strength, particularly with the PBOC
reluctant to watch the currency appreciate much more. 

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