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USDCNH remains well within its recent....>

CHINA YUAN
CHINA YUAN: USDCNH remains well within its recent range after earlier attempts
to break above 6.88 failed. EURCNH failed to sustain its break above 8.1
yesterday but the broader uptrend remains intact above 8.0. JPYCNH remains below
the key 6.1 neckline resistance level, suggesting risk appetite remains upbeat
in the region.
- Chinese market correlations have shifted significantly in recent days. The
21-day rolling correlation between the CNH and the CSI300 has collapsed since
the start of the week, thanks in part to today's yuan strength and equity
weakness. That said, we would not expect the yuan to rally in the absence of a
continued recovery in stocks.

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