• USD/CNY edged lower on Friday as China’s yuan firmed supported by steady central bank backing amid rising Middle East tensions..
• China’s central bank said it will fully use its financial tools to ensure stability across stock, bond, and foreign exchange markets.
• The Iran war has heightened inflation concerns and unsettled global markets, with major central banks signaling readiness to tighten policy if price pressures rise..
• Prior to the market's opening, the PBOC set the midpoint at 6.8898 per dollar, the strongest fix since April 25, 2023.
• Immediate resistance is located at 6.902 (Daily high), any close above will push the pair towards 6.917(Higher BB).
• Support is seen at 6.886(38.2%fib) and break below could take the pair towards 6.850(Lower BB).
Recommendation: Good to sell around 6.895 with stop loss of 6.910 and target price of 6.850
