FxWirePro: USD/CNY hits fresh three-year low, scope for further downside

• USD/CNY hit fresh three year low on Monday as yuan was   supported by robust trade data ahead of a highly anticipated meeting between Presidents Donald Trump and Xi Jinping.

• China's exports expanded 14.1% from a year earlier in U.S. dollar value terms, customs data showed on Saturday, outpacing the 7.9% rise tipped by economists.

• China’s producer prices hit a 45-month high in April, topping forecasts, while consumer inflation also picked up as higher global energy costs added pressure on manufacturers amid soft domestic demand.

•China’s April producer prices rose 2.8% y/y, above Reuters forecasts of 1.6%, after March ended a 41-month streak of declines with a 0.5% gain.

•Attention will shift to this week’s meeting between Donald Trump and Chinese President Xi Jinping, where discussions are expected to focus on Iran, Taiwan and artificial intelligence.

•  Immediate resistance is located at 6.818(SMA20), any close above will push the pair towards 6.833(38.2%fib)

• Support is seen at 6.795 (38.2%fib) and break below could take the pair towards 6.785 (Lower BB).

Recommendation: Good to sell  around 6.800, with stop loss of 6.830 and target price of 6.790