• USD/CNY edged higher on Monday as China's yuan weakened slightly after data showed China factory growth slowed in July.
• China's manufacturing sector grew at its slowest pace in four months in July as output and new orders lost momentum, though export orders returned to growth after two months of contraction, a private survey showed on Monday.
• The RatingDog China General Manufacturing PMI, compiled by S&P Global, fell to 50.9 in July from 51.7 in June, below market expectations of 51.5..
• Prior to the market opening, the People's Bank of China set the midpoint rate at 6.7898 per dollar, 534 pips weaker than a Reuters estimate.
• Immediate resistance is located at 6.771(SMA 20), any close above will push the pair towards 6.781(38.2%fib)
• Support is seen at 6.749(23.6%fib) and break below could take the pair towards 6.740 (Lower BB).
Recommendation: Good to sell around 6.755, with stop loss of 6.780 and target price of 6.740
