• USD/CNY initially dipped but regained ground as the trade dispute between the US and China, the world’s two largest economies, showed little sign of easing.
• On Wednesday, U.S. President Donald Trump escalated the trade war with China while backing off from imposing steep new tariffs on most other trading partners.
•Since returning to the White House in January, Trump has frequently threatened punitive measures on trading partners, only to cancel some last minute, leaving world leaders confused by his inconsistent approach.
• The trade war comes at a tough time for China, as it faces challenges in boosting growth after the COVID-19 slump, compounded by a prolonged property market decline and deflation.
• At GMT 06:27, the dollar down 0.13% to 7.323 against the Chinese Yuan.
• Immediate resistance is located at 7.324(38.2%fib), any close above will push the pair towards 7.348(23.6%fib)
• Support is seen at 7.306(50%fib), and break below could take the pair towards 7.2874(61.8%fib)
Recommendation: Good to buy around 7.310, with stop loss of 7.250 and target price of 7.380
