Chinese Yuan trades marginally lower despite higher than expected CPI data
- USD/CNY is currently trading around 6.6272 marks.
- It made intraday high at 6.6341 and low at 6.6248 levels.
- Intraday bias remains neutral for the moment.
- A sustained close above 6.6248 marks will test key resistances at 6.6405, 6.6464, 6.6513, 6.6615, 6.6673, 6.6735 and 6.6964 marks respectively.
- Alternatively, a daily close below 6.6248 will drag the parity down towards key supports at 6.6210, 6.6039, 6.5839, 6.5710, 6.5635, 6.5456 and 6.5371 marks respectively.
- PBOC sets yuan mid-point at 6.6325/ dlr vs last close 6.6317.
- 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 Oct PPI y/y stays flat at 6.9 % (forecast 6.6 %) vs previous 6.9 %.
- China Oct CPI y/y increase to 1.9 % (forecast 1.8 %) vs previous 1.6 %.
- China Oct CPI m/m decrease to 0.1 % (forecast 0.2 %) vs previous 0.5 %.
We prefer to take short position in USD/CNY around 6.6320, stop loss at 6.6464 and target of 6.6049.
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Source: FXWire Technicals