• USD/CNY dipped on Wednesday as the greenback weakened after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut.
• U.S. consumer prices rose only slightly in July, matching forecasts, as the impact of Trump’s sweeping tariffs on goods prices has so far remained limited, data showed Tuesday.
• A 90-day extension of the U.S.-China tariff truce has eased uncertainty for the yuan, with trade relations remaining a key driver of the currency’s moves this year.
• U.S. trade officials will meet Chinese counterparts in the next two to three months to discuss the future of bilateral economic ties, Treasury Secretary Scott Bessent said Tuesday.
• Markets are also awaiting China’s credit growth and retail sales data this week for clearer insight into the broader economy’s health.
• Immediate resistance is located at 7.179(SMA 20), any close above will push the pair towards 7.194(23.6%fib)
• Support is seen at 7.165 (July 14th low) and break below could take the pair towards 7.150 (23.6%fib).
Recommendation: Good to buy around 7.165, with stop loss of 7.150 and target price of 7.200
