• USD/CNY edged lower on Thursday as China's yuan firmed as PBOC lifted the midpoint fixing to another 3-1/2-month high.
• The People's Bank of China set the midpoint rate at 6.7580 per dollar, its strongest since February 3, 2023. The spot yuan is allowed to trade 2% either side of the fixed midpoint each day.
• The yuan is up 0.2% against the dollar this month, and 4.2% firmer this year, hovering around a multi-year high of 6.70, benefiting from strong exports and dollar weakness..
• Meanwhle,the dollar clung to a seven-week high on Thursday after the Fed raised interest rates by a quarter overnight and flagged more hikes in coming months..
• Immediate resistance is located at 6.714(SMA20), any close above will push the pair towards 6.723(38.2%fib)
• Support is seen at 6.705(23.6%fib) and break below could take the pair towards 6.6989 (Lower BB).
Recommendation: Good to sell around 6.710, with stop loss of 6.730 and target price of 6.680
