• USD/CNY hovered near one week low on Thursday as worries of a worsening fiscal outlook in the United States kept investors cautious.
• Focus is on President Donald Trump’s tax bill, set for a vote in the House of Representatives as investors grow concerned it could add around $3.8 trillion to the already $36 trillion U.S. debt load.
• Moody's downgrade of U.S. sovereign debt on Friday had a limited immediate market impact but underscored growing concerns about the diminishing safe-haven appeal of U.S. assets.
•The Yuan is up 1.0% against the dollar this month and 1.3% this year, boosted by a U.S.-China trade truce and a weaker greenback amid worries over the U.S. economy.
• At GMT 08:15, the dollar was up 0.02% to 7.202 against the Chinese Yuan.
• Immediate resistance is located at 7.223(38.2%fib), any close above will push the pair towards 7.247(61.8%fib)
• Support is seen at 7.194(23.6%fib) and break below could take the pair towards 7.175 (Lower BB).
Recommendation: Good to sell around 7.205 with stop loss of 7.240 and target price of 7.170
