FxWirePro: Chinese yuan weakens on the back of lower than expected CPI data
USD/CNY is currently trading around 6.6732 marks. It made intraday high at 6.6739 and low at 6.6640 levels. Intraday bias remains bullish till the time pair holds key support at 6.6560 marks. On the top side, a sustained…
It made intraday high at 6.6739 and low at 6.6640 levels.
Intraday bias remains bullish till the time pair holds key support at 6.6560 marks.
On the top side, a sustained close above 6.6722 mark will test key resistances at 6.6870, 6.7017, 6.7583 and 6.8158 marks respectively.
Alternatively, a daily close below 6.6560 will drag the parity down towards key supports at 6.6425, 6.6281, 6.6110, 6.6042, 6.5930, 6.5710, 6.5510 (20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
PBOC sets Yuan mid-point at 6.6684/ dollar vs last close 6.6650.
Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
China August CPI y/y decrease to 1.3 % (forecast 1.7 %) vs previous 1.8 %.
China August CPI m/m decrease to 0.1 % (forecast 0.3 %) vs previous 0.2 %.
China August PPI y/y increase to -0.8 % (forecast -0.9 %) vs previous -1.7 %.
We prefer to take long position in USD/CNY around 6.67, stop loss 6.6560 and target 6.6870/6.7017.
