- USD/CNY is currently trading around 6.8901 marks.
- It made intraday high at 6.8952 and low at 6.8812 levels.
- Intraday bias remains bullish till the time pair holds key support at 6.8550 marks.
- On the top side, a sustained close above 6.8920 marks will test key resistances at 6.9224, 6.9435 and 6.9637 marks respectively.
- Alternatively, a daily close below 6.8550 will drag the parity down towards key supports at 6.8449, 6.8090, 6.7969, 6.7769, 6.7540, 6.7439, 6.7370, 6.7288, 6.7180 and 6.7055.
- PBOC sets Yuan mid-point at 6.8779/ dollar vs last close 6.8944.
- Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
- Fitch on China - Country ceiling is affirmed at 'a+'. Short term foreign- and local-currency IDRS have been affirmed at 'F1+'.
- Fitch - China's robust external finances and strong macroeconomic track record continue to support sovereign rating at its current level of 'A+'.
- Fitch - China's recent economic growth trajectory accompanied by build-up of imbalances, vulnerabilities that poses risks to its basic economic, financial stability.
- Fitch on China - Macroeconomic performance remains a rating strength despite gradual slowdown in growth.
We prefer to take long position in USD/CNY around 6.8850, stop loss at 6.8550 and target of 6.9224.
