FxWirePro: Chinese yuan strengthens remarkably in early Asia after manufacturing PMI data

• USD/CNY is currently trading around 7.0584 marks.
   
• It made intraday high at 7.0767 and low at 7.0581 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 7.0666 mark.
   
• A sustained close above 7.0666 marks will test key resistances at 7.0767, 7.0982, 7.1022, 7.1095 and 7.1266 marks respectively.
   
• Alternatively, a daily close below 7.0666 will drag the parity down towards key supports at 7.0525, 7.0449, 7.0319, 7.0262, 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. Current downside movement is short term trend correction only.
   
• China’s manufacturing PMI stands at 50.8 vs 52.0 previous release (expected 51.0).
   
• China’s non – manufacturing PMI stands at 53.2 vs 52.3 previous release (expected 52.7).
   
• China’s Caixin manufacturing PMI stands at 49.4 vs 50.1 previous release.

We prefer to take short position in USD/CNY around 7.0650, stop loss at 7.08 and target of 7.0319/7.0262.