• USD/ CNY rose on Monday as investors digested inflation data that added to economic worries and calls for fresh easing.
• China’s consumer prices rose at their quickest rate in six months, primarily due to higher food costs caused by weather disruptions. However, the increase was less than what market analysts had anticipated.
• At the same time, the worsening deflation in producer prices has heightened expectations that authorities may implement additional measures to boost economic growth.
• At GMT 13:41,the dollar was up 0.36% at 7.112 against Chinese Yuan
• Immediate resistance is located at 7.123 (Sep 3rd high), any close above will push the pair towards 7.133 (50%fib).
• Support is seen at 7.112(38.2%fib) and break below could take the pair towards 7.087 (23.6%fib).
Recommendation: Good to buy around 7.110 with stop loss of 7.090 and target price of 7.160
