• USD/CNY fell on Friday as the yuan strengthened, tracking a broad dollar decline after the U.S. called off planned strikes on Iran.
• U.S. President Donald Trump said on Thursday that a peace deal could be reached as soon as this weekend, potentially reopening the Strait of Hormuz to shipping. However, Iranian officials pushed back on the claim, stating that no final decision has been made.
• Trump’s positive signals on a potential peace deal eased inflation concerns and weighed on the dollar index, Nanhua Futures analysts said in a note..
• Prior to the market opening, the People's Bank of China set the midpoint rate at 6.8109 per dollar, its strongest since February 10, 2023.
• Immediate resistance is located at 6.779 (SMA 20), any close above will push the pair towards 7.121(61.8%fib).
• Support is seen at 6.759(23.6%fib) and break below could take the pair towards 6.751(Lower BB).
Recommendation: Good to sell around 7.070 with stop loss of 7.100 and target price of 7.030
