- USD/CNY is currently trading around 6.4451 marks.
- It made intraday high at 6.4829 and low at 6.4446 levels.
- Intraday bias remains bearish till the time pair holds key resistance at 6.5285 mark.
- A sustained close above 6.4829 marks will test key resistances at 6.5010, 6.5285, 6.5566, 6.5887, 6.6013, 6.6227, 6.6673, 6.6735, 6.6814, 6.7055, 6.7206, 6.7289 and 6.7373 marks respectively.
- Alternatively, a daily close below 6.4829 will drag the parity down towards key supports at 6.4429, 6.4323, 6.4119 and 6.4060 marks respectively.
- PBOC sets yuan mid-point at 6.5032/ dlr vs last close 6.4850.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- China August exports y/y decrease to 5.5 % (forecast 6.0 %) vs previous 7.2 %.
- China August imports y/y increase to 13.3 % (forecast 10.0 %) vs previous 11 %.
- China August trade balance USD decrease to 41.99 bln usd (forecast 48.60 bln usd) vs previous 46.73 bln usd (revised from 46.74 bln usd).
We prefer to take short position in USD/CNY around 6.4550, stop loss at 6.4850 and target of 6.4119.
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