• USD/CNY edged higher on Tuesday as Yuan weakened after the central bank set the official midpoint fixing at its widest weak-side deviation from market estimates in six months
• The yuan’s 4% rise against the dollar has made it a standout performer across Asia this year, but a sharp appreciation could undermine Chinese exporters as economic momentum begins to soften again.
•Prior to the market's opening, the People's Bank of China (PBOC) set the midpoint rate at 6.7852 per dollar, 633 pips weaker than estimate of 6.7219, the largest weaker-side deviation since February 27.
•Investor attention cantered on the latest escalation in U.S.-Iran tensions following expanded U.S. sanctions, alongside the upcoming Jackson Hole symposium for signals on Fed policy.
• Immediate resistance is located at 6.727(Daily high), any close above will push the pair towards 6.742(38.2%fib)
• Support is seen at 6.722(23.6%fib) and break below could take the pair towards 6.710(Lower BB).
Recommendation: Good to sell around 6.730, with stop loss of 6.760 and target price of 6.700
