FxWirePro: Chinese yuan falls in early Asia as China signals commitment to tighter financial regulation

• USD/CNY is currently trading around 6.7623 marks.
   
• It made intraday high at 6.7638 and low at 6.7510 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.7449 mark.
   
• A sustained close above 6.7550 marks will test key resistances at 6.7689, 6.7757, 6.7842, 6.8009, 6.8070, 6.8250, 6.8440, 6.8526, 6.8671, 6.8882, 6.8942, 6.9010 marks 6.9080 marks respectively.
   
• Alternatively, a daily close below 6.7550 will drag the parity down towards key supports at 6.7449, 6.7403, 6.7222 and 6.7118 marks respectively.
   
• PBOC sets yuan mid-point at 6.7464/ dlr vs last close 6.7526.
   
• Fitch on China says tightening is likely to become more targeted as authorities try to limit impact on economic growth.
   
• Fitch on China says more unified regulatory approach would be positive for long-term stability of China's financial system and economy.

We prefer to take long position in USD/CNY around 6.7580, stop loss at 6.7449 and target of 6.7842.
 

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