• USD/CNY strengthened on Tuesday as traders braced for additional easing measures from People's Bank of China following weaker-than-expected economic data.
• Economic data this week showed unexpected weakness in consumption, raising concerns about economic growth amid Trump’s looming tariff threats and signaling that Beijing’s stimulus efforts have yet to take effect.
• The yuan is down 0.5% this month and 2.5% this year, pressured by a weak property sector, low consumption, and falling yields, driving capital outflows.
• At GMT 06.26,the dollar was up 0.11% at 7.278 against Chinese Yuan .
• Immediate resistance is located at 7.287(23.6%fib), any close above will push the pair towards 7.297(Higher BB)
• Support is seen at 7.266(Dec 13th low) and break below could take the pair towards 7.247(38.2%fib).
Recommendation: Good to buy around 7.280 with stop loss of 7.200 and target price of 7.350
