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USDCNH has taken out yesterday's lows.........>

CHINA
CHINA: USDCNH has taken out yesterday's lows following the PBOC fix, trading at
6.8310, breaking below up trendline support from the Aug 27 low. The 55-dma at
6.8210 is the next level of support and a break below here would be a bearish
signal suggesting a potential topping pattern.
- Implied USDCNY volatility continues to plummet, trading close to three-month
lows, which suggests risk appetite is returning to the market. 
- Interest rate swaps have come back in slightly this morning, with the 2-year
down 1.5bps at 3.0250%, but the uptrend remains intact. 
- A continued rally in Chinese stocks would likely be needed to trigger further
yuan strength as correlations between stocks, rates, and the yuan begin to rise
once again. 

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