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

• USD/CNY is currently trading around 7.0304 marks.
   
• It made intraday high at 7.0464 and low at 7.0281 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 7.0619 mark.
   
• A sustained close above 7.0619 marks will test key resistances at 7.0750, 7.0822, 7.0905, 7.1022, 7.1142, 7.1267, 7.1303, 7.1428 and 7.1515 marks respectively.
   
• Alternatively, a daily close below 7.0427 will drag the parity down towards key supports at 7.0285, 7.01, 7.0076, 6.9857 and 6.9510 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• China’s CPI stands at 4.3 pct vs 5.2 pct previous release (expected 4.9 pct).
   
• China’s PPI stands at -1.5 pct vs -0.4 pct previous release (expected -1.1 pct).

We prefer to take short position in USD/CNY around 7.0350, stop loss at 7.0620 and target of 7.01/7.0076.