• USD/CNY eased on Thursday as China's yuan firmed as investors digested the latest monetary policy decision from the People’s Bank of China.
• China held its benchmark lending rates steady on Thursday, prioritizing financial and currency stability over aggressive monetary stimulus.
• China's central bank announced last week it would adjust monetary policy to support the economy amid growing external challenges, particularly the escalating U.S. trade war under President Trump.
• Trump introduced a 10% tariff on Chinese imports as part of a broader strategy to address the U.S. trade imbalance, prompting retaliation from Beijing.
• At (GMT 10:34) dollar was trading down 0.09% at 7.284 against the Chinese yaun.
• Immediate resistance is located at 7.285(38.2%fib), any close above will push the pair towards 7.314 (23.6%fib).
• Support is seen at 7.259(50%fib) and break below could take the pair towards 7.235(61.8%fib).
Recommendation: Good to buy around 7.260 with stop loss of 7.220 and target price of 7.300
