FxWirePro: Chinese yuan strengthens despite lower than expected CPI, PPI data

• USD/CNY is currently trading around 6.9281 marks.
   
• It made intraday high at 6.9461 and low at 6.9252 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.9550 mark.
   
• A sustained close above 6.9446 marks will test key resistances at 6.9540, 6.97, 6.9867, 6.9957, 7.0168, 7.0388, 7.07 and 7.0920 marks respectively.
   
• Alternatively, a daily close below 6.9446 will drag the parity down towards key supports at 6.9013, 6.88 and 6.8662 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China’s CPI remains unchanged at 4.5 pct vs 4.7 pct expected.
   
• China’s PPI stands at -0.5 pct vs -1.4 pct previous release (expected -0.4).

We prefer to take short position on USD/CNY around 6.9320, stop loss at 6.95 and target of 6.9013/6.88.