USDCNH is testing its 200dma at..........>

CHINA YUAN: USDCNH is testing its 200dma at 6.7471, with the Jan 11 low at

6.7377 lying just below this level. The yuan is benefitting from broad based

dollar weakness, yet continues to broadly outperform its peers. 

- This comes despite the PBOC announcing late last week that it will allow

China's primary dealers to swap their holdings of perpetual bonds for central

bank bills, and directly use those bonds as collateral to access certain PBOC

liquidity operations, which many see as a form of or at least a precursor to QE.

The yuan's resilience suggests that continued easing is already priced into

expectations. 

- It is a busy week on the data/news front with US-China trade talks likely to

dominate while PMI releases later in the week should help shine some light on

the extent of China's slowdown.