• USD/CNY edged lower on Wednesday as investors kept a close eye on global trade negotiations and their potential implications for China’s economic outlook..
• China and the U.S. reached a trade framework in June aimed at easing escalating tariffs, following a phone call between former President Trump and Chinese President Xi Jinping.
•The key risk event for markets today is the U.S. nonfarm payrolls report, with analysts expecting a 110,000 increase in jobs for June and a slight uptick in the unemployment rate to 4.3%.
• On the data front, China’s services sector grew at its slowest pace in nine months in June .China’s Caixin Services PMI eased to 50.6 in June from 51.1 in May its lowest level since September 2024—signaling a further slowdown in services activity.
• At GMT 05:59, the dollar was down 0.02% to 7.163 against the Chinese Yuan.
• Immediate resistance is located at 7.175(SMA 20), any close above will push the pair towards 7.197(38.2%fib)
• Support is seen at 7.155(23.6%fib) and break below could take the pair towards 7.143 (Lower BB).
Recommendation: Good to sell around 7.165, with stop loss of 7.200 and target price of 7.120
