FxWirePro: Chinese yuan depreciates as CPI data misses expectations, PBOC sets yuan mid-point at 6.3768

• USD/CNY is currently trading around 6.3651 marks.
   
• It made intraday high at 6.3689 and low at 6.3584 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.3510 mark.
   
• A sustained close above 6.3584 marks will test key resistances at 6.3738, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3584 will drag the parity down towards key supports at 6.3510, 6.3332, 6.3210, 6.3000 and 6.2892 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 6.3768 / dlr vs last close 6.3688.
   
• China April CPI y/y decrease to 1.8 % (forecast 1.9 %) vs previous 2.1 %.
   
• China April PPI y/y increase to 3.4 % (forecast 3.5 %) vs previous 3.1 %.
   
• China April CPI m/m increase to -0.2 % (forecast -0.1 %) vs previous -1.1 %.

We prefer to take long position on USD/CNY around 6.3600, stop loss 6.3510 and target of 6.3855.

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