- USD/CNY is currently trading around 6.9432 marks.
- It made intraday high at 6.9465 and low at 6.9371 levels.
- Intraday bias remains neutral till the time pair holds key resistance at 6.9578 mark.
- A sustained close above 6.9578 marks will test key resistances at 6.9611, 6.98, 6.9920, 7.0120 and 7.0388 marks respectively.
- Alternatively, a daily close below 6.9240 will drag the parity down towards key supports at 6.90, 6.8788, 6.8658, 6.84 and 6.8222 marks respectively.
- Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
- China’s CPI y/y stands at 5.2 pct vs 5.4 pct previous release (expected 5.2).
- China’s PPI y/y stands at -0.4 pct vs 0.1 pct previous release (expected -0.3).
Positioning is inconclusive at this point. We remain sideways for the time being.
