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• USD/CNY strengthened on Thursday as investors digested US inflation data and awaited slew of Chinese economic data over the weekend .
• Dollar gained support overnight following U.S. data that showed the core consumer price index (CPI) rose 0.28% in August.
•Meanwhile ,investors awaited a series of Chinese economic data set for release on Saturday, including house prices and retail sales, for the latest update on China’s struggling economic recovery.
• At GMT 07:20,the dollar was up 0.06% at 7.123 against Chinese Yuan .
• Immediate resistance is located at 7.129(50%fib), any close above will push the pair towards 7.134 (Aug 28th high)
• Support is seen at 7.107(38.2%fib) and break below could take the pair towards 7.084(23.6%fib).
Recommendation: Good to buy around 7.120 with stop loss of 7.100 and target price of 7.140
