FxWirePro: Chinese yuan depreciates after mixed economic data

• USD/CNY is currently trading around 6.3476 marks.
   
• It made intraday high at 6.3515 and low at 6.3388 levels.
   
• Intraday bias remains slightly bullish till the time pair holds key support at 6.3229 mark.
   
• A sustained close above 6.3388 marks will test key resistances at 6.3515, 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3388 will drag the parity down towards key supports at 6.3229, 6.3100, 6.2942, 6.2827, 6.2584, 6.2322, 6.2196 and 6.1907 marks respectively.
   
• PBOC sets yuan mid-point at 6.3451 / dlr.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• China Feb CPI y/y increase to 2.9 % (forecast 2.5 %) vs previous 1.5 %.
   
• China Feb CPI m/m increase to 1.2 % (forecast 0.8 %) vs previous 0.6 %.
   
• China Feb PPI y/y decrease to 3.7 % (forecast 3.8 %) vs previous 4.3 %.

We prefer to take short position on USD/CNY only below 6.3388, stop loss at 6.3625 and target of 6.3100/6.2942/6.2584.

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