Watch out below

The 6.40 level in USD/CNH was touted to have seen some intervention earlier by Chinese officials but now that has given way and it looks likely to open up another leg lower in the pair, with talk of the 6.37 level being eyed next at the moment.

This comes amid strong positive sentiment in Chinese markets today, with mainland equities gaining sharply as the CSI 300 index is seen up by 3%.