FxWirePro: Chinese yuan falls as China’s retail sales, industrial production fail to meet expectations

• USD/CNY is currently trading around 6.8991 marks.
   
• It made intraday high at 6.8996 and low at 6.8946 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.8907 marks. 
   
• A sustained close above 6.8971 marks will test key resistances at 6.9080, 6.9146, 6.9204, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
   
• Alternatively, a daily close below 6.8971 will drag the parity down towards key supports at 6.8907, 6.8749, 6.8683, 6.8550, 6.8465, 6.8333, 6.8298, 6.8090 and 6.7769 marks respectively.
   
• PBOC sets yuan mid-point at 6.8852 / dlr vs last close 6.8993.
   
• China’s April industrial output y/y decrease to 6.5 % (forecast 7.1 %) vs previous 7.6 %.
   
• China’s April urban investment (ytd)y/y decrease to 8.9 % (forecast 9.1 %) vs previous 9.2 %.
   
• China’s April retail sales y/y decrease to 10.7 % (forecast 10.6 %) vs previous 10.9 %.

We prefer to take long position in USD/CNY only above 6.9050, stop loss at 6.8907 and target of 6.9146.