FxWirePro: USD/CNY hit fresh 3 ½ year low , scope for further downside

• USD/CNY hit fresh 3 ½ year low  on  Thursday  as the U.S.' move to prop up long-dated bonds failed to ease concerns over the country's spiraling debt.

• The U.S. Treasury announced overnight it will double buyback sizes for long-duration debt, as it sought to stanch an upward march in yields that sent the 30-year Treasury yield US30YT=RR to its highest level since 2007 earlier this week

•Growing investor unease over mounting government debt had sparked a steep bond selloff from the U.S. to Germany and Japan this week, exacerbated by heavy AI-related borrowing by technology companies and still-elevated oil prices.

•Before the market opened, the PBOC set its yuan reference rate   at 6.7808 per dollar. That was 612 pips weaker than a Reuters estimate, representing the biggest weak-side deviation since February.

•  Immediate resistance is located at 6.743(38.2%fib), any close above will push the pair towards 6.748(SMA 20)

• Support is seen at 6.721(23.6%fib) and break below could take the pair towards 6.717 (Lower BB).

Recommendation: Good to sell around 6.730, with stop loss of 6.800 and target price of 6.700