• USD/ CNY hits 16 -month low on Tuesday after Beijing announced a slate of stimulus measures including rate cuts and fresh funding for equity purchases.
• China's central bank announced its largest stimulus package since the pandemic on Tuesday, aiming to lift the economy out of deflation and move it closer to the government's growth target
• The PBoC's stimulus measures include a series of interest rate cuts and funding initiatives aimed at steering the economy toward growth targets and eliminating deflation.
• At GMT 14:28,the dollar was down 0.31% at 7.031 against Chinese Yuan
• Immediate resistance is located at 7.055 (38.2%fib), any close above will push the pair towards 7.064 (Daily high).
• Support is seen at 7.030(23.6%fib) and break below could take the pair towards 7.000 (Psychological level).
Recommendation: Good to sell around 7.040 with stop loss of 7.100 and target price of 7.000
