FxWirePro: Chinese yuan falls on the back of lower than expected CPI data

• USD/CNY is currently trading around 6.8980 marks.
   
• It made intraday high at 6.8988 and low at 6.8892 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.8831 mark.
   
• A sustained close above 6.8892 marks will test key resistances at 6.9037, 6.9146, 6.9204, 6.9336, 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
   
• Alternatively, a daily close below 6.8892 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 6.8940/dollar vs last close 6.8903.
   
• China’s March PPI y/y decrease to 7.6 % (forecast 7.6 %) vs previous 7.8 %.
   
• China’s March CPI y/y increase to 0.9 % (forecast 1.0 %) vs previous 0.8 %.
   
• China’s March CPI m/m decrease to -0.3 % (forecast -0.3 %) vs previous -0.2 %.

We prefer to take long position in USD/CNY around 6.8950, stop loss 6.8831 and target of 6.9204/6.9268.