FxWirePro: USD/CNY edges lower as Yuan firms slightly after Trump-Xi deal

• USD/CNY edged lower on Monday as traders continued to assess last week’s U.S.–China trade deal.

• The agreement reached last week between President Trump and President Xi to postpone reciprocal tariffs for a year helped ease near-term trade tensions but failed to bridge the broader strategic divide between the U.S. and China..

• The deal includes U.S. tariff reductions and a pause in China’s new export restrictions on rare earth minerals and magnets, extending the fragile trade truce between the world’s two largest economies.

•Meanwhile,Friday's official PMI survey showed China's factory activity falling for the seventh straight month, confirming suspicions that the earlier export rush to get ahead of U.S. tariffs had well and truly ended.

• At GMT 04:50,the dollar was down 0.02% at 7.114 against Chinese Yuan .

 •  Immediate resistance is located at 7.119(SMA 20), any close above will push the pair towards 7.136 (38.2%fib)

• Support is seen at 7.096(23.6%fib) and break below could take the pair towards 7.094 (Lower BB).

Recommendation: Good to buy around  7.115 with stop loss of 7.100 and target price of 7.130