FxWirePro: Chinese yuan gains despite lower than expected Caixin services PMI data

• USD/CNY is currently trading around 6.7940 marks.
   
• It made intraday high at 6.7990 and low at 6.7915 levels.
   
• Intraday bias remains neutral till the time pair holds key resistance at 6.80 marks.
   
• A sustained close above 6.7947 marks will test key resistances at 6.8006, 6.8099, 6.8250, 6.8440, 6.8526, 6.8671, 6.8882, 6.8942, 6.9010 marks 6.9080 marks respectively.
   
• Alternatively, a daily close below 6.7947 will drag the parity down towards key supports at 6.7767, 6.7607, 6.7520, 6.7436 and 6.7222 marks respectively.
   
• China caixin/markit June services PMI shows new orders drop to 51.9, lowest since may 2016 (vs 53.5 in May).
   
• China caixin/markit June composite PMI (services and manufacturing) falls to 51.1 vs may 51.5.
   
• China June caixin services PMI decrease to 51.6 vs previous 52.8.
   
• PBOC sets yuan mid-point at 6.7922/ dlr vs last close 6.8005.

We prefer to take long position in USD/CNY only above 6.8006, stop loss at 6.7845 and target of 6.8352.

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