• USD/CNY rose on Monday as the Chinese yuan weakened following China's inflation data, which indicated further economic weakness.
• Official data released on Monday showed that China's consumer inflation hit a five-month low in November, while producer price deflation persisted, despite a series of recent stimulus efforts.
• The Chinese currency has experienced renewed downside pressure, pushed down by tariff threats from US President-elect Donald Trump and monetary policy divergence between China and the US.
• At GMT 06:43,the dollar was up 0.10% at 7.277 against Chinese Yuan.
•Technical signals show the pair could gain more ground as RSI is up at 65, and 9, 11,21 SMA’s are trending north.
• Immediate resistance is located at 7.290 (23.6%fib), any close above will push the pair towards 7.299(higher BB).
• Support is seen at 7.254 (38.2%fib) and break below could take the pair towards 7.225 (50%fib).
Recommendation: Good to buy around 7.260 with stop loss of 7.200 and target price of 7.350
