FxWirePro: USD/CNY holds near one month low as PBOC sets firm fix

• USD/CNY held near one month low on Tuesday  as the People’s Bank of China (PBOC) continued to signal its commitment to currency stability.

• Prior to the market opening, the People’s Bank of China set the yuan’s daily midpoint rate  at 7.1188 per dollar, providing guidance for the currency’s trading band.

• The PBOC has been setting a much stronger yuan fix than   estimates over the past month.
 

• Market focus now turns to Friday’s release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, for signals on the U.S. rate-cut outlook.

• At GMT 06:02, the dollar was up  0.03% to 7.153 against the Chinese Yuan.

•  Immediate resistance is located at 7.167(Daily high), any close above will push the pair towards 7.180(SMA 20).

• Support is seen at 7.149(50%fib) and break below could take the pair towards 7.140 (Lower BB).

Recommendation: Good to buy  around 7.150, with stop loss of 7.170 and target price of 7.130