VIEW: On Thursday TD Securities wrote....>

CHINA YUAN: VIEW: On Thursday TD Securities wrote "policymaker rhetoric has

emphasized the near-term importance of the 7.00 level in USD/CNY, while the

reintroduction of the counter-cyclical factor in the daily fixing attempts to

stabilize CNY and tame the pace of CFETS depreciation. We believe that past any

near-term consideration over disorderly CNY adjustment, the 7.00 level will be

allowed to eventually fall if seen as fundamentally necessary. Considerations

regarding the need to adjust against

tariff impact as well as preserve FX reserves against much higher external debt

levels should dominate China's priorities. We remain bearish CNY, seeing the

need for further macro adjustment, and the risk that additional U.S. actions

drag on China's economy, during a drawn-out trade war. We thus continue to see

7.20 achieved in the coming months (though the near-term defence of 7.00 may

delay that), and the potential for a surge in offshore renminbi points and

CNH-Hibor funding costs."