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USDCNH trades at 6.90 following the......>

CHINA YUAN
CHINA YUAN: USDCNH trades at 6.90 following the PBOC fix, caught between its
21-dma at 6.9314 on the upside and its 55-dma on the downside at 6.8856. A close
below the 55-dma is needed to suggest a bearish trend is emerging, while above
the 21-dma would point to renewed gains in the pair towards the key 7.0 level.
- Caixin services PMI is due out in ~15 mins which could give some indication of
which technical level will come under pressure first. 
- With US-China 2-year swap spreads remaining near cycle highs at 22.2bps, there
has been little support for the yuan from rate markets.  

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