• 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
