FxWirePro: Chinese yuan strengthens on robust retail sales, GDP data

• USD/CNY is currently trading around 6.7658 marks.
   
• It made intraday high at 6.7757 and low at 6.7643 levels.
   
• Intraday bias remains bearish till the time pair holds key resistance at 6.7842 mark.
   
• A sustained close above 6.7740 marks will test key resistances at 6.7842, 6.8009, 6.8070, 6.8250, 6.8440, 6.8526, 6.8671, 6.8882, 6.8942, 6.9010 marks 6.9080 marks respectively.
   
• Alternatively, a daily close below 6.7740 will drag the parity down towards key supports at 6.7607, 6.7520, 6.7436 and 6.7222 marks respectively.
   
• China June industrial output y/y increase to 7.6 % (forecast 6.5 %) vs previous 6.5 %.
   
• China June retail sales y/y increase to 11 % (forecast 10.6 %) vs previous 10.7 %.
   
• China Q2 GDP y/y stays flat at 6.9 % (forecast 6.8 %) vs previous 6.9 %.
   
• China Q2 GDP Q/Q increase to 1.7 % (forecast 1.7 %) vs previous 1.3 %.
   
• PBOC sets yuan mid-point at 6.7562/ dlr vs last close 6.7741.
   
• China sets yuan mid-point at strongest level since November 2016.

We prefer to take short position in USD/CNY around 6.7710, stop loss at 6.7850 and target of 6.7607/6.7520.

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