FxWirePro: USD/CNY trades in narrow range after China’s trade balance data

• USD/CNY is currently trading around 6.9025 marks.
   
• It made intraday high at 6.9092 and low at 6.8889 levels.
   
• Intraday bias remains neutral for the moment. .
   
• A sustained close above 6.9365 marks will test key resistances at 6.9496, 6.9615, 6.9778 and 6.9883 marks respectively.
   
• Alternatively, a daily close below 6.9145 will drag the parity down towards key supports at 6.8720, 6.8510 and 6.8449 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• PBOC sets Yuan mid-point at 6.8909/ dollar vs last close 6.8901.
   
• China’s December trade balance decreases to 40.818 bln $ (forecast 46.50 bln $) vs previous 44.61 bln $.
   
• China’s December exports y/y decreases to -6.1 % (forecast -3.5 %) vs previous 0.1 %.
   
• China’s December imports y/y decreases to 3.1 % (forecast 2.7 %) vs previous 6.7 %.                                

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.