• USD/CNY strengthened on Tuesday as investors evaluated the latest economic data from China.
• China's exports stood out as a rare positive amid the struggling economy, surpassing forecasts with an 8.7% year-on-year increase in August by value, the strongest growth rate in 17 months.
• Imports, however, fell short of forecasts, increasing by only 0.5%. This follows weaker-than-expected inflation data released on Monday, underscoring persistent weakness in domestic demand.
• At GMT 16:09,the dollar was up 0.10% at 7.120 against Chinese Yuan .
• Immediate resistance is located at 7.123(38.2%fib), any close above will push the pair towards 7.137 (Aug 28th high)
• Support is seen at 7.107(Sep 4th low) and break below could take the pair towards 7.087(23.6%fib).
Recommendation: Good to buy around 7.120 with stop loss of 7.100 and target price of 7.140
