- USD/CNY is currently trading around 6.2772 marks.
- It made intraday high at 6.2791 and low at 6.2722 levels.
- Intraday bias remains slightly bullish till the time pair holds key support at 6.2654 mark.
- A sustained close above 6.2890 marks will test key resistances at 6.3068, 6.3158, 6.3210, 6.3320, 6.3515, 6.3625, 6.3855 and 6.4017 marks respectively.
- Alternatively, a daily close below 6.2654 will drag the parity down towards key supports at 6.2584, 6.2419, 6.2322, 6.2196 and 6.1907 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
- PBOC sets yuan mid-point at 6.2771 / dlr vs last close 6.2761.
- China Central bank conducts medium-term lending facility (mlf) lending on tuesday.
- China Central bank adjusts 1-year mlf rate up by 5 basis points to 3.30 pct, matches march hike in short-term rate.
- China Central bank injects 367.5 billion yuan via 1-year mlf loan.
- China Q1 GDP q/q sa decrease to 1.4 % (forecast 1.5 %) vs previous 1.6 %.
- China March urban investment (ytd)yy decrease to 7.5 % (forecast 7.6 %) vs previous 7.9 %.
- China March retail sales yy increase to 10.1 % (forecast 9.9 %) vs previous 9.7 %.
- China March industrial output yy decrease to 6 % (forecast 6.2 %) vs previous 7.2 %.
- China Q1 GDP yy stays flat at 6.8 % (forecast 6.7 %) vs previous 6.8 %.
We prefer to take short position on USD/CNY only below 6.2654, stop loss 6.2960 and target of 6.2322.
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