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USDCNH is trading close to daily lows....>

CHINA YUAN
CHINA YUAN: USDCNH is trading close to daily lows at 6.8500 as bears look to
target the Sep 13 low at 6.8228. A series of hawkish statements from Premier Li
on the yuan helped the recovery, which has also been supported by the continued
rally in Chinese stocks. 
- Several factors seem to be aligned for a bearish move in USDCNH, but one
exception is China-US yield spreads. The spread of China's 2-year interest rate
swap over the US has fallen back to zero today, reducing fundamental support for
the yuan. 

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