FxWirePro: Chinese yuan strengthens on robust trade balance data

• USD/CNY is currently trading around 6.7026 marks.
   
• It made intraday high at 6.7206 and low at 6.6959 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.7289 mark.
   
• A sustained close above 6.7206 marks will test key resistances at 6.7289, 6.7373, 6.7486, 6.7529, 6.7668, 6.7757, 6.7842, 6.8009 and 6.8122 marks respectively.
   
• Alternatively, a daily close below 6.7206 will drag the parity down towards key supports at 6.7118, 6.7011, 6.6826, 6.6778 and 6.6554 marks respectively.
   
• PBOC sets yuan mid-point at 6.7184/ dlr vs last close 6.7214.
   
• China July trade balance USD increase to 46.74 bln $ (forecast 46.08 bln $) vs previous 42.77 bln $.
   
• China July exports y/y decrease to 7.2 % (forecast 10.9 %) vs previous 11.3 %.
   
• China July imports y/y decrease to 11 % (forecast 16.6 %) vs previous 17.2 %.

We prefer to take short position in USD/CNY around 6.7050, stop loss at 6.7289 and target of 6.6778.

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