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.…
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.
