FxWirePro: USD/CNY hovers near 3-1/2-year low, Outlook bearish

• USD/CNY hovered near 3-1/2-year low on  Friday as investors shifted   attention to the Jackson Hole symposium for fresh policy signals from the Federal Reserve that could sway currency markets..

• The dollar weakened and was set for a weekly loss as investors viewed the U.S. Treasury’s bond buyback plan as a temporary fix..

• Prior to the market open, the People's Bank of China (PBOC) set the midpoint rate at 6.7817 per dollar, 555 pips weaker than   estimate of 6.7262.  

• PBOC has set weaker-than-expected midpoint fixings since November 2025, widely seen as an effort to curb excessive strength and stabilize the market.

• Focus is on Fed Chairman Kevin Warsh's speech at the central bank's Jackson Hole symposium next week for clues on how he plans to tackle still-elevated inflation.

•  Immediate resistance is located at 6.736(Aug 20th high), any close above will push the pair towards 6.746(38.2%fib)

• Support is seen at 6.719(23.6%fib) and break below could take the pair towards 6.714 (Lower BB).

Recommendation: Good to sell around 6.730, with stop loss of 6.750  and target price of 6.700