FxWirePro: USD/CNY holds steady as trade talks ease tensions, market eyes China's politburo meeting

• USD/ CNY traded flat on Wednesday as constructive trade discussions between the U.S. and China helped calm geopolitical tensions and dampened immediate currency pressures.

• Top officials from both sides wrapped up two days of talks on Tuesday, agreeing to explore an extension of the current 90-day tariff truce, describing discussions as “constructive” and forward-looking.  

•  Investors now turn their attention to the upcoming end-July Politburo meeting, where Beijing may unveil additional stimulus to bolster slowing growth in the second half of the year.

• Meanwhile, focus is also firmly on the Federal Reserve’s policy meeting later today, which could offer fresh clues on the U.S. rate path.

• Fed is expected to hold rates steady, markets are still pricing in a possible cut in September, especially amid ongoing pressure from President Trump for looser policy.

• At GMT 06:03,the dollar   was flat 0.06% at 7.176 against Chinese Yuan.

•  Immediate resistance is located at 7.185(38.2%fib), any close above will push the pair towards 7.189(Higher BB).

• Support is seen at 7.171(SMA 20) and break below could take the pair towards 7.155 (Lower BB).

Recommendation: Good to buy around 7.175   with stop loss of 7.1500 and target price of 7.190