• USD/CNY traded flat on Wednesday as investors awaited of U.S. inflation data later in the day that could shape the Federal Reserve's rate trajectory.
• Investors are also watching U.S. consumer price index data for May, due later Wednesday, a crucial gauge of whether the Fed may lean toward rate hikes later this year following last week's stronger-than-expected jobs data.
• On the domestic data front, China's producer prices rose for a third straight month in May to the highest since July 2022, driven by rising commodity prices and improved demand. Consumer prices also stayed elevated.
• The central bank has been setting softer-than-expected midpoint fixings, a move that market participants widely interpreted as an attempt to keep the market stable..
• Immediate resistance is located at 6.783(SMA 20), any close above will push the pair towards 6.812(Higher BB)
• Support is seen at 6.761(23.6%fib) and break below could take the pair towards 6.753(Lower BB).
Recommendation: Good to sell around 6.780, with stop loss of 6.850 and target price of 6.730
