FxWirePro: Chinese yuan strengthens in early Asia on robust trade balance data

• USD/CNY is currently trading around 6.8744 marks.
   
• It made intraday high at 6.8889 and low at 6.8729 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.90 mark.
   
• A sustained close above 6.8914 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 6.8914 will drag the parity down towards key supports at 6.8683, 6.8550, 6.8465, 6.8333, 6.8298, 6.8090 and 6.7769 marks respectively.
   
• PBOC sets Yuan mid-point at 6.8651/dollar vs last close 6.8930.
   
• China’s Q1 trade balance +454.94 bln yuan.
   
• China’s Q1 yuan-denominated exports +14.8 pct y/y.
   
• China’s Q1 yuan-denominated imports +31.1 pct y/y.

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.