FxWirePro: USD/CNY edges lower amid easing U.S.-China tensions

• USD/CNY slipped lower on Wednesday   as tensions between the U.S. and China eased, with investors focusing on upcoming U.S. economic data to assess the Federal Reserve's next policy move.

• Reduced trade conflict between the two nations helped alleviate some of the pressure on the Chinese yuan, while market participants now await critical U.S. reports, including employment data, GDP figures, and inflation measures, to gain insights into the Fed’s potential actions.

• The White House has backtracked several times on the sweeping tariffs imposed by Trump in early April.

• China's manufacturing activity contracted in April, according to an official survey, prompting continued calls for more stimulus as Trump's April 2 "Liberation Day" tariffs halted two months of recovery.

•China's official purchasing managers' index (PMI) dropped to 49.0 in April, down from 50.5 in March, marking the lowest reading since December 2023, according to the National Bureau of Statistics (NBS).

• Chinese financial markets will be closed for the Labor Day holiday starting Wednesday, with trading set to resume on May 6.

•  Immediate resistance is located at 7.289(50%fib), any close above will push the pair towards 7.300(28th April high)

• Support is seen at 7.261 (61. 8%fib),  and break below could take the pair towards 7.247 (Lower BB )

Recommendation: Good to buy around 7.260, with stop loss of 7.250 and target price of 7.290