FxWirePro: Chinese yaun falls on Moody's downgrade rating  

• USD/CNY is currently trading around 6.8919 marks.
   
• It made intraday high at 6.8942 and low at 6.8879 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.8800 marks. 


• A sustained close above 6.89 marks will test key resistances at 6.8953, 6.9010, 6.9080, 6.9146, 6.9204, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.


• Alternatively, a daily close below 6.89 will drag the parity down towards key supports at 6.88, 6.8701, 6.8683, 6.8550, 6.8465, 6.8333, 6.8298, 6.8090 and 6.7769 marks respectively.
   
• PBOC sets yuan mid-point at 6.8758/ dlr vs last close 6.8890.
   
• Moody's Investors Service downgraded China's credit rating to A1 from Aa3, changing its outlook to stable from negative.
   
• Moody's on China - GDP will remain very large; growth will remain high compared to other sovereigns, potential growth is likely to fall in coming years.
   
• Moody's on China - Expect China's growth potential to decline to close to 5% over the next five years.


• Moody's on China - Expect the government's direct debt burden to rise gradually towards 40% of GDP by 2018 and closer to 45% by the end of the decade.

We prefer to take long position in USD/CNY around 6.8900, stop loss 6.8800 and target of 6.9080/6.9157.