FxWirePro: Chinese yuan depreciates on the back of lower than expected China’s Caixin services PMI data

• USD/CNY is currently trading around 6.8945 marks.
   
• It made intraday high at 6.8959 and low at 6.8919 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.8831 mark.
   
• A sustained close above 6.8919 marks will test key resistances at 6.8962, 6.9073, 6.9146, 6.9204, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
   
• Alternatively, a daily close below 6.8919 will drag the parity down towards key supports at 6.8831, 6.8778, 6.8683, 6.8550, 6.8465, 6.8333, 6.8298, 6.8090 and 6.7769 marks respectively.
   
• PBOC sets Yuan mid-point at 6.8930/dollar vs last close 6.8975.
   
• China’s March Caixin services PMI decreases to 52.2 vs previous 52.6.
   
• China’s March Caixin services PMI new business component falls to 6-month low of 52.2 (February 53.3).

We prefer to take long position in USD/CNY around 6.8920, stop loss 6.8830 and target of 6.9073.