• USD/ CNY rebounded on Wednesday as U.S. currency's firmed on reduced bets for imminent Federal Reserve rate cuts.
• Data on Tuesday showed U.S. consumer prices rose 0.3% in June, in line with forecasts, but the largest gain since January
• Economists said tariffs imposed by the Trump administration were fueling higher prices in categories like coffee and furnishings.
• The Federal Reserve has paused rate moves as it watches for inflationary effects from tariffs, which Powell had projected would surface during the summer.
• Investors are now turning their attention to Wednesday’s producer price data for clues on whether inflation is rising at the factory level.
• At GMT 05:58,the dollar was up 0.10% at 7.179 against Chinese Yuan.
• Immediate resistance is located at 7.181 (38.2%fib), any close above will push the pair towards 7.187(Higher BB).
• Support is seen at 7.156(23.6%fib) and break below could take the pair towards 7.153 (Lower BB).
Recommendation: Good to sell around 7.175 with stop loss of 7.150 and target price of 7.200
