FxWirePro: Chinese yuan appreaciates remarkably despite lower than expected CPI, PPI data

• USD/CNY is currently trading around 6.7864 marks.
   
• It made intraday high at 6.8226 and low at 6.7845 levels.
   
• Intraday bias remains bearish for the moment.
   
• A sustained close above 6.8116 marks will test key resistances at 6.8530, 6.8886, 6.9075, 6.9210, 6.9396, 6.9525 and 6.9620 marks respectively.
   
• Alternatively, a daily close below 6.8116 will drag the parity down towards key supports at 6.7658, 6.7412, 6.7222 and 6.7160 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• PBOC sets yuan mid-point at 6.8160 / dlr vs last close 6.8175.
   
• China Dec 2018 CPI yy decrease to 1.9 % (forecast 2.1 %) vs previous 2.2 %.
   
• China Dec 2018 PPI yy decrease to 0.9 % (forecast 1.6 %) vs previous 2.7 %.

We prefer to take short position on USD/CNY around 6.7950, stop loss at 6.8210 and target of 6.7412.