CNY — Short-Term Bullish NarrativeUSD/CNHOANDA:USDCNHLeox_MarketsI maintain a bullish short-term outlook on the Chinese yuan. CNY has gained around 4% against USD this year and USD/CNY is trading near multi-year lows around 6.72. The PBOC continues to gradually strengthen its yuan guidance, while keeping Chinese benchmark lending rates unchanged, supporting the currency. The main risk is that the PBOC appears uncomfortable with overly rapid yuan appreciation and may try to slow the move. Strong U.S. data and renewed Fed tightening expectations could also support USD temporarily. COT data for CNH is currently not sufficiently available/useful to provide a reliable institutional positioning signal, so I am putting more weight on PBOC policy, USD direction and USD/CNH price action.