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USDCNH managed to close below its 21-dma......>

CHINA
CHINA: USDCNH managed to close below its 21-dma yesterday and has edged down
slightly today trading at 6.8340. A close below 6.8000 would be very bearish and
suggest that a topping process is in play.
- Rate and equity markets are sending some slightly positive signals in this
regard, with the 2-year swap threatening to break above its 55-dma to build on
its recovery and both local and Hong Kong stocks up over 1%. Given the close
cross-asset correlation in China, this should provide support to the yuan. 

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