• USD/CNY rose on Friday as Yuan weakened amid concerns over China’s economic struggles and a widening bond yield differential to the US.
• The yuan breached the psychological milestone of 7.3 per dollar for the first time since late 2023, reflecting investor apprehension about China's economic health and the prospect of U.S. import tariffs under the incoming Trump administration.
•Additionally, the yield gap between Chinese and U.S. bonds has widened, with China's long-term bond yields near record lows, prompting investors to seek higher returns in dollar-denominated assets
• At GMT 15:46,the dollar was up 0.28% at 7.319 against Chinese Yuan .
• Immediate resistance is located at 7.321(23.6%fib), any close above will push the pair towards 7.329(Higher BB)
• Support is seen at 7.297(Daily low) and break below could take the pair towards 7.290(38.2%fib).
Recommendation: Good to buy around 7.310 with stop loss of 7.250 and target price of 7.350
