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USDCNH trades just off its daily high at......>

CHINA
CHINA: USDCNH trades just off its daily high at 6.9040, having failed to
challenge yesterday's high. EURCNH has bounced off the 7.90 level thanks
entirely to the EURUSD recovery, but the pair remains shy of the key 8.0 level
suggesting the trend maybe turning bearish. The same holds true for GBPCNH which
remains below the key 9.0 level despite recent gains.
- Hong Kong stocks have regained some composure after early weakness in sympathy
with US markets, but the 26600 level remains elusive for now. 
- Given the recent surge in US yields it is difficult to see a yuan recovery in
the absence of an equity rally. 

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