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• USD/CNY edged lower on Monday as dollar dipped as escalating Middle East tensions fuelled inflation fears.
• The United States carried out strikes on two Iranian launchers on Larak Island on Sunday, its first known military action against Iran since late July..
• Iran launched attacks on two U.S. military bases in Jordan in response to the U.S. strikes, Iranian media reported on Monday, citing the Revolutionary Guards.
• China’s factory activity improved in August on stronger demand but remained in contraction for a second consecutive month, while weak services and construction activity highlighted persistent imbalances in the economy.
•Focus will turn to a U.S.-hosted meeting of G20 finance ministers and central bank governors on Monday and Tuesday.
• Immediate resistance is located at 6.745(SMA20), any close above will push the pair towards 6.756(38.2%fib)
• Support is seen at 6.769(Daily low) and break below could take the pair towards 6.758 (Lower BB).
Recommendation: Good to sell around 6.720, with stop loss of 6.760 and target price of 6.700
