FxWirePro: USD/CNY hits highest level since 2023 as trade war escalates

• USD/CNY hit highest level since 2023 on Tuesday as traders assessed the PBOC's fixing and China's warning of additional countermeasures against U.S. tariffs.

• PBOC    slightly loosened its grip on the currency in what analysts said was an attempt to counteract the blow to exports from an intensifying global trade war.

• On Monday, President Trump threatened to impose 50% tariffs on China, effective Wednesday, in response to Beijing's retaliatory measures announced last Friday.

• China dismissed what it called U.S. blackmail as the global trade war ignited by Trump's tariffs showed no signs of easing on Tuesday, even as stock markets stabilized.

• The yuan has faced increased pressure since Trump's re-election, sparking speculation that Beijing may weaken it to boost exports amid escalating trade tensions with the U.S.

•  Immediate resistance is located at 7.335(Daily high), any close above will push the pair towards 7.344(23.6%fib)

• Support is seen at 7.325(38.2%fib) and break below could take the pair towards 7.310(50%fib).

Recommendation: Good to buy around 7.310, with stop loss of 7.250 and target price of 7.370