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USDCNH has resumed its uptrend,..........>

CHINA YUAN
CHINA YUAN: USDCNH has resumed its uptrend, breaking back above Friday's high to
test the 6.9500 level. A bullish pennant is forming with resistance coming in at
6.96, a break of which would return the focus to the Nov 1 peak ahead of a
potential run at the key 7.0 level. 
- The combination of declining equities and stability in US rates is a bearish
combination for the yuan as US-China real yield spreads remain near cycle highs
while China's CDS spreads are on the rise. The 5-year CDS hit 18-month highs
yesterday as contagion from US corporate credit markets weighed. Rising CDS
spread have tended to be yuan negative. 

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