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USDCNH trades at 6.9408, recovering......>

CHINA YUAN
CHINA YUAN: USDCNH trades at 6.9408, recovering some of its drop following
relatively dovish comments from Fed's Powell yesterday which saw the pair
reverse from daily highs. The yuan has also benefitted from the recovery in
global risk appetite that has seen Hong Kong stocks break to the upside.
- Bears have a real chance of breaking below key support at the 50-dma which
comes in at 6.9230 and has capped losses over the up cycle. 
- US-China interest rate spreads have started to ease back from cycle highs and
the recovery in Chinese stocks should support a further narrowing. 
- Focus turns to FOMC Nov meeting minutes which will be released later today,
ahead of the Trump-Xi meeting Saturday. 

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