• USD/CNY hovered near two week high on Monday as greenback strength after fresh signs of Middle East tensions drove investors into risk-off mode.
• A drone strike sparked a fire at a UAE nuclear plant, while Saudi Arabia intercepted three drones, as Trump warned Iran to act quickly amid stalled U.S.-Iran peace efforts.
• Market sentiment was dented further after China’s April data showed industrial output and retail sales sharply missed forecasts, highlighting slowing growth amid higher Iran war-related energy costs and weak domestic demand..
• Before the market opened, the People's Bank of China (PBOC) set the midpoint rate CNY=PBOC at 6.8435 per dollar.
• Separately, Sino-U.S. ties remained in focus after China said both countries agreed to expand agricultural trade through tariff cuts and address non-tariff barriers following last week’s Beijing summit.
• Immediate resistance is located at 6.815(SMA 20), any close above will push the pair towards 6.826(38.2%fib)
• Support is seen at 6.783(23.6%fib) and break below could take the pair towards 6.775(Lower BB).
Recommendation: Good to sell around 6.820, with stop loss of 6.850 and target price of 6.780
