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USDCNH is edging lower in line with......>

CHINA YUAN
CHINA YUAN: USDCNH is edging lower in line with broad dollar weakness overnight,
with the pair currently trading at 6.7440. 6.7300 should act as strong support,
marking yesterday's breakout level.
- Chinese and US 2-year interest rate swaps continue to diverge, with the spread
between the two hitting a fresh low today of just 8.5bps, continuing to
undermine the fundamental outlook for the yuan. 
- The last time USDCNH traded at current levels, 12 months ago, the 2-year swap
spread was ~180bps in China's favour. 

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