Chinese Yuan continues to strengthen against US dollar despite negative trade balance results
Pair is currently supported below 6.51 marks and trading around 6.5045 levels. It made intraday high at 6.5150 and low at 6.5049 levels. Intraday bias remains bearish for the moment. Today China released trade balance da…
Pair is currently supported below 6.51 marks and trading around 6.5045 levels.
It made intraday high at 6.5150 and low at 6.5049 levels.
Intraday bias remains bearish for the moment.
Today China released trade balance data with negative numbers. The trade surplus shrank from 406 billion to 210 billion. Exports tumbled 17.8% year-on-year in February, marking the eighth month in a row that exports have declined. Imports were down 13.8% over the same period, the sixteenth-consecutive decline.
A daily close below 6.5072 will drag the parity towards key support area at 6.4910/ 6.4736 levels.
Alternatively, a reversal from 6.4910 will take the parity back above 6.56 levels.
China will release industrial production as well as retail sales data on coming Saturday. This will provide further direction to the parity.
We prefer to take short position in USD/CNY around 6.5100, stop loss 6.5191 and target 6.4910/ 6.4736 levels.
