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USDCNH has extended its early drop to....>

CHINA YUAN
CHINA YUAN: USDCNH has extended its early drop to trade at 6.7631 last with
bears now looking to make a run at the key 6.70 level once again. The SCMP
report that suggests President Xi is scheduled to meet key members of the US
trade delegation on Friday on Friday has given the yuan a lift but the strength
largely reflects broad based dollar weakness. 
- Yuan strength does not have the support of rate markets as early upside in
Chinese swaps has been given back to send the US-China yield spread wider. The
equity market continues its surge though suggesting that optimism surrounding
the Chinese economic outlook is firming. 

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