• USD/CNY inched higher on Wednesday as the yuan softened ahead of key U.S. jobs data that may influence the Fed’s December decision.
•Investors are looking toward a wave of postponed U.S. economic reports following the historic government shutdown.
• The delayed September NFP release on Thursday is expected to shed light on the labor market and the likelihood of Fed cuts.
•Traders are inching up bets on monetary easing from the Federal Reserve at its next meeting, although there is still uncertainty given division within the central bank on whether to delay a rate cut.
Despite the day's slight pullback, the yuan remains up 0.2% against the dollar this month and has strengthened 2.7% so far this year.
• Immediate resistance is located at 7.113(SMA 20), any close above will push the pair towards 7.132(38.2%fib).
• Support is seen at 7.092(23.6%fib) and break below could take the pair towards 7.089(Lower BB).
Recommendation: Good to sell around 7.113 with stop loss of 7.130 and target price of 7.100
