• USD/CNY dipped on Thursday as the yuan found support from the strongest PBOC fixing in 10 months.
• Ahead of the market open, the People’s Bank of China set the reference rate at 7.1063 per dollar, the strongest since November 2024.
• Meanwhile, dollar edged lower as markets priced in greater odds of a Fed rate cut next month, following dovish remarks from Fed President John Williams.
• Market focus now turns to Friday’s release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, for signals on the U.S. rate-cut outlook.
• At GMT 06:47, the dollar was down 0.14% to 7.142 against the Chinese Yuan.
• Immediate resistance is located at 7.150(38.2%fib), any close above will push the pair towards 7.174(SMA 20).
• Support is seen at 7.137(Lower BB) and break below could take the pair towards 7.110 (23.6%fib).
Recommendation: Good to sell around 7.150, with stop loss of 7.170 and target price of 7.130
