FxWirePro: Chinese yuan strengthens in early Asia after China’s central bank governor issues statements

• USD/CNY is currently trading around 6.7509 marks.
   
• It made intraday high at 6.7680 and low at 6.7386 levels.
   
• Intraday bias remains bearish for the moment.
   
• A sustained close above 6.7667 marks will test key resistances at 6.7899, 6.8210, 6.8525 and 6.8886 marks respectively.
   
• Alternatively, a daily close below 6.7667 will drag the parity down towards key supports at 6.7250, 6.7050 and 6.6722 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.7542 / dlr vs last close 6.7670.
   
• China Central bank - RRR cut effective on Tuesday.
   
• China's Central bank - Will keep liquidity reasonably ample.
   
• China's finance ministry says will implement larger tax cuts, fee cuts.
   
• China Central bank vice governor Zhu - China is confident on exchange rate despite RRR cuts.

We prefer to take short position on USD/CNY around 6.7560, stop loss at 6.7700 and target of 6.7050.