- USD/CNY is currently trading around 6.7973 marks.
- It made intraday high at 6.7980 and low at 6.7959 levels.
- Intraday bias remains neutral for the moment.
- A sustained close above 6.7980 marks will test key resistances at 6.8030, 6.8116, 6.8298, 6.8354, 6.8671, 6.8882, 6.8942, 6.9010 marks 6.9080 marks respectively.
- Alternatively, a daily close below 6.7980 will drag the parity down towards key supports at 6.7888, 6.7769, 6.7626, 6.7520 and 6.7436 marks respectively.
- PBOC sets yuan mid-point at 6.7939/ dlr vs last close 6.7989.
- China’s May industrial output y/y stays flat at 6.5 % (forecast 6.3 %) vs previous 6.5 %.
- China’s May retail sales y/y stays flat at 10.7 % (forecast 10.6 %) vs previous 10.7 %.
We prefer to take short position in USD/CNY around 6.80, stop loss at 6.8116 and target of 6.7520.
