- USD/CNY is currently trading around 6.9227 marks.
- It made intraday high at 6.9349 and low at 6.9175 levels.
- Intraday bias remains bearish for the moment. .
- A sustained close above 6.9350 marks will test key resistances at 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
- Alternatively, a daily close below 6.9350 will drag the parity down towards key supports at 6.9175, 6.9026, 6.8983, 6.8720, 6.8510 and 6.8449 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- PBOC sets Yuan mid-point at 6.9234/ dollar vs last close 6.9330.
- China’s December CPI y/y decreases to 2.1 % (forecast 2.3 %) vs previous 2.3 %.
- China’s December PPI y/y increases to 5.5 % (forecast 4.5 %) vs previous 3.3 %.
- China’s December CPI m/m increase to 0.2 % (forecast 0.3 %) vs previous 0.1 %.
We prefer to take short position in USD/CNY around 6.9250, stop loss 6.9372 and target of 6.9026.
