FxWirePro: USD/CNY hovers around 6.50 mark, PBOC sets yuan mid-point firmer for the first time since May 2016

• USD/CNY is currently trading around 6.5001 marks.
   
• It made intraday high at 6.5132 and low at 6.4772 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.4772 mark.
   
• A sustained close above 6.4772 marks will test key resistances at 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 6.4772 will drag the parity down towards key supports at 6.4510, 6.4429, 6.4345, 6.4119 and 6.4060 marks respectively.
   
• PBOC sets yuan mid-point at 6.4997/ dlr vs last close 6.4890.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• China sets yuan mid-point stronger for 11th straight session, highest since May 12, 2016.
   
• China August fiscal revenues +7.2 pct yr/yr.


• China August fiscal expenditures +2.9 pct yr/yr.
   
• China Jan - Aug fiscal revenues +9.8 pct yr/yr.
   
• China Jan - Aug fiscal expenditures +13.1 pct yr/yr.

We prefer to take long position in USD/CNY around 6.4920, stop loss at 6.4772 and target of 6.5285/6.5465.

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