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USDCNH trades just below the 6.90........>

CHINA YUAN
CHINA YUAN: USDCNH trades just below the 6.90 level following the failure of
bulls to cement gains above here on Friday and at today's open. Below this level
keeps the yuan's recovery intact, while bulls look to break above here to 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 China's trade data
over the weekend, which saw imports grow by just 2.7 y/y in dollar terms, as
well as the news that China's vice foreign minister summoned the U.S. Ambassador
to China to protest the arrest of Huawei Technologies Co.'s chief financial
officer.
- Much of the yuan's strength can be put down to dollar weakness against the
majors, although the yuan is outperforming among EM FX.

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