FxWirePro: USD/CNY dips as Yuan firms despite weak China factory data

• USD/CNY  dipped  on Monday   as yuan firmed as markets awaited the results of peace talks in the Middle East.

• China’s factory activity stagnated in May as new export orders declined sharply, adding to signs of slowing growth after weak April data.

• Prior to the market opening, the People's Bank of China set the midpoint rate at 6.8167 per dollar, its strongest since February 14, 2023.

• Oil prices jumped more than 2% after Israel ordered troops deeper into Lebanon, raising concerns over renewed tensions despite an existing ceasefire.

•  The USD/CNY  was 0.01% lower at 6.765 to the greenback, having gained for two straight weeks and moving to its strongest level since early 2023.

•  Immediate resistance is located at 6.779(Daily high), any close above will push the pair towards 6.791(38.2%fib)

• Support is seen at 6.764(23.6%fib) and break below could take the pair towards 6.757(Lower BB).

Recommendation: Good to sell around 6.770, with stop loss of 6.860 and target price of 6.755