• USD/CNY edged higher on Thursday as investors assessed dimmed prospects for an imminent Federal Reserve rate hike after US CPI data.
• U.S. consumer prices matched expectations, easing near-term dollar appreciation pressure and giving the yuan a steady to slightly firmer bias..
• The central bank has been gradually strengthening its daily yuan guidance but at levels weaker than market expectations, suggesting it wants to manage the pace of appreciation..
•The PBOC said it would conduct up to 600 billion yuan ($88.98 billion) in overnight reverse repos per day from August 14 and August 17-19, using the short-term tool to fine-tune liquidity conditions in China’s banking system...
• Immediate resistance is located at 6.758(SMA 20), any close above will push the pair towards 6.768(38.2%fib)
• Support is seen at 6.741(23.6%fib) and break below could take the pair towards 6.736 (Lower BB).
Recommendation: Good to sell around 6.750, with stop loss of 6.800 and target price of 6.730
