- China's Yuan has weakened sharply after Chinese authorities have announced a small devaluation of the Yuan.
- The PBOC devalued the currency by raising the Midpoint against the dollar to 6.2298 from 6.1162 earlier.
- Chinese exports has fallen 8.3% in July, biggest drop in four months and far worse than expectations for a 1% fall. PBOC has devalued its currency to boost the flagging exports.
- Asian currencies are expected to face more pressure due to devalue of Chinese Yuan. Among Asian currencies SGD, KRW and TWD are the most at risk among Asian currencies from a potentially weaker CNY in the months ahead.
- Technically it is facing strong resistance around 6.350 and above which it can reach till 6.39270 (Jul 23rd 2012 high)
- The major support is around 6.25 and any break below targets 6.210.
It is good to buy at dips around 6.30 with SL around 6.25 for the TP of 6.35/6.3925.
