FxWirePro: China's yuan weakens to 6.9000 per dollar despite robust CPI, PPI data

• USD/CNY is currently trading around 6.8997 marks.
   
• It made intraday high at 6.9024 and low at 6.8770 levels.
   
• Intraday bias remains neutral for the moment.  
   
• A sustained close above 6.8850 marks will test key resistances at 6.9052, 6.9128, 6.9237, 6.9330, 6.9435, 6.9637 and 6.9883 marks respectively.
   
• On the other side, a daily close below 6.8770 will drag the parity down towards key supports at 6.8731, 6.8510, 6.8449, 6.8090, 6.7969, 6.7769, 6.7540, 6.7439, 6.7370, 6.7288, 6.7180 and 6.7055.
   
• 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 6.8972/ dollar vs last close 6.8825.
   
• China’s November PPI y/y increases to 3.3 % (forecast 2.2 %) vs previous 1.2 %.
   
• China’s November CPI y/y increases to 2.3 % (forecast 2.2 %) vs previous 2.1 %.
   
• China’s November CPI m/m increases to 0.1 % (forecast 0.1 %) vs previous -0.1 %.

We prefer to go long on USD/CNY around 6.89, stop loss at 6.8731 and target of 6.9330.