USDCNH trades back up above the 6.90.....>

CHINA YUAN: USDCNH trades back up above the 6.90 level but remains below last

week's high at 6.9073, keeping the near-term outlook neutral. A break above here

would target the 50-dma at 6.9245, above which the broader bull market would

resume. 

- The yuan is holding up in spite of the weakness seen in stocks and the

continued decline in rates.  Much of the yuan's strength can be put down to

dollar weakness against the majors, although the yuan is outperforming among the

region. 

- China's trade data over the weekend disappointed, with imports rising by just

2.7 y/y in dollar terms, while risk assets have also been pressured by the risks

posed to US-China trade relations from the ongoing Huawei CFO story.