FxWirePro: USD/CNY outlook weaker on renewed downside pressure

• USD/ CNY edged lower  on Friday  as PBOC continued to steer the currency stronger to stabilise the market ahead of a key policy meeting next week.

• The gains came after the central bank lifted its daily reference rate for a third straight day, marking the highest level in a year.

• The PBOC fixed the midpoint rate at 7.0949 per dollar ahead of market open, marking its firmest level since October 15, 2024, and 205 pips stronger than the   projection of 7.1154.

•Meanwhile, Trade tensions intensified as China increased rare earth export curbs and U.S. President Trump warned of 100% tariffs on Chinese goods along with tighter software export rules from November 1.

• On Thursday, China accused the U.S. of fueling alarm over its rare earth controls, criticizing Treasury Secretary Bessent for misrepresenting a top trade negotiator and rejecting calls from the White House to relax the restrictions.

• Market attention is now shifting to China’s Q3 GDP and other key activity metrics on Monday, alongside the Central Committee of the Communist Party conference.

•  Immediate resistance is located at 7.123(SMA20), any close above will push the pair towards 7.138(Higher BB).

• Support is seen at 7.109(Lower BB) and break below could take the pair towards 7.102(Lower BB).

Recommendation: Good to sell around 7.125 with stop loss of 7.145  and target price of 7.115