FxWirePro: Chinese yuan falls as retail sales, industrial production data fail to meet expectations

• USD/CNY is currently trading around 6.5472 marks.
   
• It made intraday high at 6.5530 and low at 6.5399 levels.
   
• Intraday bias remains bullish for the moment.
   
• A sustained close above 6.5405 marks will test key resistances at 6.5566, 6.5887, 6.6013, 6.6227, 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289 and 6.7373 marks respectively.
   
• Alternatively, a daily close below 6.5405 will drag the parity down towards key supports at 6.5205, 6.4829, 6.4772, 6.4510, 6.4429, 6.4345, 6.4119 and 6.4060 marks respectively.
   
• PBOC sets yuan mid-point at 6.5465/ dlr vs last close 6.5447.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China August urban investment (ytd) y/y decrease to 7.8 % (forecast 8.2 %) vs previous 8.3 %.
   
• China August industrial output y/y decrease to 6 % (forecast 6.6 %) vs previous 6.4 %.
   
• China August retail sales y/y decrease to 10.1 % (forecast 10.5 %) vs previous 10.4 %.

We prefer to take long position in USD/CNY around 6.5370, stop loss at 6.5205 and target of 6.5887.

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