• USD/CNY steadied against dollar on Wednesday as the yuan declined, following a report that showed China might allow the currency to weaken next year in response to higher tariffs.
• Allowing the yuan to devalue may make Chinese exports more affordable, helping to offset the impact of tariffs and possibly relaxing monetary conditions in mainland China..
• Trump has said he plans to impose a 10% universal import tariff, and a 60% tariff on Chinese imports into the United States.
• looking ahead, all eyes are on the U.S. inflation report, due later today, which is expected to provide clues about the Federal Reserve's rate-cut plans ahead of its policy meeting later this month.
• Immediate resistance is located at 7.277(23.6%fib), any close above will push the pair towards 7.286(Higher bb)
• Support is seen at 7.242(38.2%fib) and break below could take the pair towards 7.216(50%fib).
Recommendation: Good to buy around 7.260 with stop loss of 7.200 and target price of 7.290
