USDCNH is trading at its daily lows of........>

CHINA: USDCNH is trading at its daily lows of 6.8370 as bears look to recover

the breakout above short-term down trendline resistance (now support) from the

August 15 high. The pair is at a technical crossroads where a close below 6.8275

would be bearish while a close above 6.8400 would be bullish.

- Interest rate swaps are trading in the middle of their recent range, with the

2-year at 2.91%, 8bps outside the US. Price action is capped between the 55-dma

above and the 21-dma below, with the convergence of the two moving averages

suggesting a significant move is on the way.

- By the look of the equity market, risks are to the downside as the the CSI 300

remains under pressure despite being off its lows at 3310. However, a strong

close in stocks would shift the outlook positive for all Chinese financial

assets given the high correlations at present.