• USD/ CNY strengthened on Thursday as dollar strengthened after data showed that U.S. retail sales increased slightly more than expected in September.
• U.S. retail sales rose 0.4% last month, following an unrevised 0.1% increase in August. Economists surveyed expected retail sales to grow by 0.3%
• Traders are now pricing in 44 basis points of additional cuts by year-end, or a less than 100% chance of a 25 basis point cut at both of the Fed’s next two meetings.
•Technical signals are bullish as RSI is up at 66, moving averages are trending north
• Immediate resistance is located at 7.129(23.6%fib), any close above will push the pair towards 7.140 (Higher BB).
• Support is seen at 7.107(38.2%fib) and break below could take the pair towards 7.089 (50%fib).
Recommendation: Good to buy around 7.115 with stop loss of 7.070 and target price of 7.140
