FxWirePro: Chinese yuan weakens on the back of lower than expected CPI data

• USD/CNY is currently trading around 6.6732 marks.
   
• It made intraday high at 6.6739 and low at 6.6640 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 6.6560 marks. 
   
• On the top side, a sustained close above 6.6722 mark will test key resistances at 6.6870, 6.7017, 6.7583 and 6.8158 marks respectively.
   
• Alternatively, a daily close below 6.6560 will drag the parity down towards key supports at 6.6425, 6.6281, 6.6110, 6.6042, 6.5930, 6.5710, 6.5510 (20D EMA), 6.5369, 6.5758, 6.4910, 6.4721 and 6.4531 levels.
   
• PBOC sets Yuan mid-point at 6.6684/ dollar vs last close 6.6650.
   
• Important to note here that 20D, 30D and 55D EMA heads up and confirms the bullish trend in a daily chart.
   
• China August CPI y/y decrease to 1.3 % (forecast 1.7 %) vs previous 1.8 %.
   
• China August CPI m/m decrease to 0.1 % (forecast 0.3 %) vs previous 0.2 %.
   
• China August PPI y/y increase to -0.8 % (forecast -0.9 %) vs previous -1.7 %.                  

We prefer to take long position in USD/CNY around 6.67, stop loss 6.6560 and target 6.6870/6.7017.