FxWirePro: Chinese yuan falls despite higher than expected retail sales, industrial production data

14 September 2016, 02:18
Eko Rediantoro
0
31

  • USD/CNY is currently trading around 6.6827 marks.
     
  • It made intraday high at 6.6873 and low at 6.6780 levels.
     
  • Intraday bias remains bullish till the time pair holds key support at 6.6710 marks. 
     
  • On the top side, a sustained close above 6.6800 mark will test key resistances at 6.6873, 6.7017, 6.7583 and 6.8158 marks respectively.
     
  • Alternatively, a daily close below 6.68 will drag the parity down towards key supports at 6.6710, 6.6640, 6.6560, 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 6.6726/ dollar vs last close 6.6805.
     
  • Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
     
  • China’s August retail sales y/y increase to 10.6 % (forecast 10.3 %) vs previous 10.2 %.
     
  • China’s August urban investment y/y stays flat at 8.1 % (forecast 8.0 %) vs previous 8.1 %.
     
  • China’s August industrial output y/y increase to 6.3 % (forecast 6.1 %) vs previous 6.0 %.              

We prefer to take long position in USD/CNY around 6.68, stop loss 6.6710 and target 6.7017.


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