USDCNH is testing yesterday's highs,.......>

CHINA FX: USDCNH is testing yesterday's highs, currently at 6.1522, as it

competes for the worst performance Asian currency this week along with the

Taiwanese dollar and Indonesian rupiah, with a loss of 0.9% at the time of

writing. 

- The firm break higher in USDTWD, which broke above resistance at 30.00 on

Monday and continues to trade higher, is a bearish sign for the yuan, given the

close links between the two currencies and economies and currencies. USDTHB,

another currency pair that closely tracks USDCNH has also smashed above its

200DMA, adding further pressure on the regional FX and the yuan in particular. 

- In an exclusive interview (see 'China Engages U.S. to Deescalate Trade War',

Mainwire 07:04 EDT, June 21), a source told MNI that Chinese trade officials

have quietly approached their US counterparts seeking ways to minimize punitive

tariffs on Chinese exports and avoid a full-blown trade war, which raises the

prospect of a snap back in Asian FX. However, for now the dollar is trending

higher and shows no sign of reversing.