FxWirePro: USD/CNY hits one month low, scope for further downside

• USD/ CNY slipped to hit one month low on Monday  as China's yuan was lifted by a dovish policy pivot by the U.S. Federal Reserve Chair Jerome Powell.

• Speaking Friday, Powell signaled the Fed may lower rates next month, highlighting mounting job market concerns and ongoing inflation risks.  

•  Markets now see an 87% chance of a 25 bps cut at the Sept. 17 Fed meeting, with 48 bps of easing priced in by year-end, CME FedWatch shows.

•  The dollar has been under   pressure in recent weeks as U.S. President Donald Trump's attacks on Powell and other Fed policymakers raised concerns about central bank independence.

• Meanwhile, Investors will watch U.S. trade and tariff talks with South Korea and India for potential market impact.

• At GMT 06:27,the dollar   was down 0.24% at 7.148 against Chinese Yuan.

•  Immediate resistance is located at 7.168(Daily high), any close above will push the pair towards 7.182(SMA20).

• Support is seen at 7.150(Daily low) and break below could take the pair towards 7.142 (Lower BB).

Recommendation: Good to sell around 7.160   with stop loss of 7.170 and target price of 7.140