USDCNH trades at 6.8785, little..........>

CHINA YUAN: USDCNH trades at 6.8785, little changed following the PBOC fix,

which came in at 6.8509. USDCNH is trading at the high side of its recent range,

with a firm close above 6.880 needed to extend the broader bullish trend. 

- 2-year swap spreads between China and the US have once again fallen back down

to zero as Chinese swap rates have edged back down from the 3.0% level to trade

at 2.9550% today. This has seen the 21-day rolling correlation between the yuan

and China's 2-year interest rate swaps fall further into negative territory. 

- EURCNH was unable to sustain a move above 8.0 last week, but is testing this

level again today. 

- It is a quiet day, and indeed week, for Chinese data, with the pair likely to

remain susceptible to news surrounding US-China trade relations.