FxWirePro: Chinese yuan trades flat despite lower than expected industrial production, retail sales data
USD/CNY is currently trading around 7.0015 marks. It made intraday high at 7.0086 and low at 6.9904 levels. Intraday bias remains slightly bearish till the time pair holds key resistance at 7.0282 mark. A sustained close…
It made intraday high at 7.0086 and low at 6.9904 levels.
Intraday bias remains slightly bearish till the time pair holds key resistance at 7.0282 mark.
A sustained close above 7.0282 marks will test key resistances at 7.0388, 7.0425, 7.05, 7.0670 and 7.1030 marks respectively.
Alternatively, a daily close below 7.0035 will drag the parity down towards key supports at 6.9732, 6.9510, 9.94, 6.9240, 6.90 and 6.8788 marks respectively.
Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
China’s industrial production stands at -13.5 pct vs 6.9 pct previous release (expected -3.0).
China’s fixed asset investment stands at -24.5 pct vs 5.4 pct previous release (expected -2.0 pct).
China’s retail sales stands at -20.5 pct vs 8.0 pct previous release (expected -4.0).
China’s unemployment rate stands at 6.2 pct vs 5.2 pct previous release.
We prefer to take long position in USD/CNY only above 7.01, stop loss at 6.9732 and target of 7.0282/7.0388/7.05.