FxWirePro: USD/CNY edges higher as PBOC holds lending rates steady

• USD/ CNY gained modestly on Monday after the People’s Bank of China (PBOC) left its key lending rates unchanged.

• China held its benchmark lending rates steady on Monday, in line with expectations, following the release of slightly better-than-expected second-quarter economic data.  

•China’s economy slowed less than expected in Q2, showing resilience despite U.S. tariffs. However, analysts warn that weak domestic demand and growing global trade risks may force Beijing to step up stimulus efforts.

• Market focus will turn to the upcoming Politburo meeting later this month, which is expected to set the tone for China’s economic policy for the remainder of the year..

• At GMT 04:50,the dollar   was up 0.02% at 7.178   against Chinese Yuan.

•  Immediate resistance is located at 7.185(38.2%fib), any close above will push the pair towards 7.189(Higher BB).

• Support is seen at 7.171 (SMA 20) and break below could take the pair towards 7.158 (23.6%fib).

Recommendation: Good to buy around 7.1750  with stop loss of 7.150 and target price of 7.200