FxWirePro: Chinese yuan strengthens on robust manufacturing PMI data, PBOC sets yuan mid-point at 6.4144

• USD/CNY is currently trading around 6.4102 marks.
   
• It made intraday high at 6.4174 and low at 6.4102 levels.
   
• Intraday bias remains slightly bearish till the time pair holds key resistance at 6.4190 marks.
   
• A sustained close above 6.4190 marks will test key resistances at 6.4278, 6.4329, 6.4525 and 6.4730 marks respectively.
   
• Alternatively, a daily close below 6.4190 will drag the parity down towards key supports at 6.3979, 6.3750, 6.3654, 6.3510, 6.3313 and 6.3210 marks respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart. Current downside movement is short term trend correction only.
   
• PBOC sets yuan mid-point at 6.4144 / dlr vs last close 6.4218.
   
• China May composite PMI increase to 54.6.
   
• China May NBS non - manufacturing PMI increase to 54.9 vs previous 54.8.
   
• China May NBS manufacturing PMI increase to 51.9 (forecast 51.3 ) vs previous 51.4.

We prefer to take short position on USD/CNY around 6.4120, stop loss 6.4200 and target of 6.3979/6.3750.

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