FxWirePro: China’s yuan gains in early hours of Asia as GDP, retail sales data meet expectations

• USD/CNY is currently trading around 6.7360 marks.
   
• It made intraday high at 6.7400 and low at 6.7337 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.7180 marks. 
   
• On the top side, a sustained close above 6.7410 marks will test key resistances at 6.7583 and 6.8158 marks respectively.
   
• Alternatively, a daily close below 6.7180 will drag the parity down towards key supports at 6.7055, 6.6820, 6.6605, 6.6560, 6.6425, 6.6281, 6.6110, 6.6042, 6.5930, 6.5710, 6.5510 (20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
   
• PBOC sets Yuan mid-point at 6.7326/ dollar vs last close 6.7418.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
   
• China’s Q3 GDP y/y stays flat at 6.7 % (forecast 6.7 %) vs previous 6.7 %.
   
• China’s September Urban investment y/y increases to 8.2 % (forecast 8.2 %) vs previous 8.1 %.
   
• China’s September industrial output y/y decreases to 6.1 % (forecast 6.4 %) vs previous 6.3 %.
   
• China’s September retail sales y/y increases to 10.7 % (forecast 10.6 %) vs previous 10.6 %.
   
• China’s Q3 GDP Q/Q stays flat at 1.8 % (forecast 1.8 %) vs previous 1.8 %.

We prefer to take long position in USD/CNY around 6.7340, stop loss at 6.7055 and target of 6.7583/6.7718/6.8158.