FxWirePro: USD/CNY slightly softer ahead of Sino-US tariff deadline

• USD/CNY edged lower on Monday as markets awaited clarity on the August 12 trade truce deadline between the world’s two largest economies.

• Trade and geopolitical risks remain in focus, with a U.S. tariff deadline on China set to expire Tuesday amid expectations of another extension.

• Markets are also assessing the risk that Washington could impose additional tariffs in response to China’s purchases of Russian oil.
 

• The key economic release will be U.S. consumer prices on Tuesday, with analysts expecting tariff effects to push core CPI up 0.3% for the month, lifting the annual rate to 3.0% and further above the Federal Reserve’s 2% target.

• At GMT 06:53, the dollar was down  0.02% to 7.182 against the Chinese Yuan.

•  Immediate resistance is located at 7.205(Higher BB), any close above will push the pair towards 7.212(61.8%fib)

• Support is seen at 7.179(50%fib) and break below could take the pair towards 7.154 (Lower BB).

Recommendation: Good to buy  around 7.180, with stop loss of 7.170 and target price of 7.220