• USD/ CNY was little changed on Wednesday as investors awaited a U.S. Federal Reserve policy decision due later on Wednesday that could sway the currency pair.
• Global investor attention will later be focused on an expected 25 basis point interest rate cut by the Fed, possibly accompanied by hawkish guidance.
• Markets are pricing in a 25-basis-point rate cut by the Federal Reserve later on Wednesday and see two additional cuts as likely in 2026.
• The meeting will also help shape expectations for President Donald Trump’s forthcoming nominee to lead the central bank, as Jerome Powell’s term as chair expires in May.
• Markets are also awaiting signals on next year’s growth targets from China’s annual Central Economic Work Conference, typically held in December, while traders are watching credit-lending data due later this week for clues on economic momentum.
• Immediate resistance is located at 7.072 (Dec 9th high), any close above will push the pair towards 7.084(SMA 20).
• Support is seen at 7.060(23.6%fib) and break below could take the pair towards 7.049 (Lower BB).
Recommendation: Good to sell around 7.070 with stop loss of 7.090 and target price of 7.050
