FxWirePro: USD/CNY moves in stiff boundaries, PBOC sets yuan mid-point at 6.3167 per U.S. dollar

• USD/CNY is currently trading around 6.3209 marks.
   
• It made intraday high at 6.3223 and low at 6.3124 levels.
   
• Intraday bias remains neutral till the time pair holds key resistance at 6.3515 marks.
   
• A sustained close above 6.3515 marks will test key resistances at 6.3625, 6.3855 and 6.4017 marks respectively.
   
• Alternatively, a daily close below 6.3110 will drag the parity down towards key supports at 6.3005, 6.2942, 6.2827, 6.2584, 6.2322, 6.2196 and 6.1907 marks respectively.
   
• PBOC sets yuan mid-point at 6.3167 / dlr.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
   
• China Central Bank raises 7-day reverse repo rate by 5 basis points to 2.55 percent.
   
• China Central Bank says rate adjustment is normal response to fed's rate hike.
   
• China Central Bank says rate increase can help stabilize macro leverage ratio.

Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.

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