FxWirePro: Chinese yuan trades marginally higher after mixed economic data

• USD/CNY is currently trading around 6.6987 marks.
   
• It made intraday high at 6.7055 and low at 6.6986 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.7206 mark.
   
• A sustained close above 6.7048 marks will test key resistances at 6.7206, 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 6.7048 will drag the parity down towards key supports at 6.6826, 6.6778 and 6.6554 marks respectively.
   
• PBOC sets yuan mid-point at 6.7075/ dlr vs last close 6.7080.
   
• PBOC sets yuan mid-point at strongest level since October 10, 2016.
   
• China July CPI y/y decrease to 1.4 % (forecast 1.5 %) vs previous 1.5 %.
   
• China July PPI y/y stays flat at 5.5 % (forecast 5.5 %) vs previous 5.5 %.
   
• China July CPI m/m increase to 0.1 % (forecast 0.2 %) vs previous -0.2 %.

We prefer to take short position in USD/CNY around 6.7020, stop loss at 6.7206 and target of 6.6778.

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