• USD/CNY dipped on Thursday as yuan firmed ahead U.S. jobs data that could shape the Federal Reserve's rate outlook.
• U.S. non-farm payrolls data is expected to show U.S. employers added 110,000 jobs in June, with the unemployment rate holding steady at 4.3%.
• The Politburo meeting will be one of the main domestic drivers for yuan this month, and policy supports for the economy could anchor a mild strengthening bias against the dollar.
• Prior to the market opening, the People's Bank of China set the midpoint rate CNY=PBOC at 6.8088 per dollar, off the more than three-year high seen in the previous session and 159 pips weaker than a Reuters estimate..
• The central bank has been consistently setting the midpoint guidance weaker than market projections as it manages the pace of appreciation.
• Immediate resistance is located at 6.802(50%fib), any close above will push the pair towards 6.814(Higher BB)
• Support is seen at 6.781(38.2%fib) and break below could take the pair towards 6.753(23.6%fib).
Recommendation: Good to sell around 6.785, with stop loss of 6.800 and target price of 6.690
