FxWirePro: USD/CNY steadies around 7.291 ,retains bid tone

USD/CNY strengthened on Monday as the Chinese yuan weakened, driven by investor concerns over rising Sino-U.S. trade tensions after President Trump proposed additional tariffs on Chinese goods.

• President Donald Trump has announced that an additional 10% tariff on Chinese imports will take effect on March 4. In response, China is formulating countermeasures, potentially targeting U.S. agricultural and food products.

• Trade tensions during Trump's first term hurt the yuan, with U.S.-China tariffs causing the currency to fall over 12% against the dollar from March 2018 to May 2020.

On the data front, China's factory activity rose in February, driven by stronger supply, demand, and a rebound in export orders, according to a private-sector survey released Monday.

• At GMT 07:55 ,the dollar   was up 0.13% at 7.291 against Chinese Yuan.

•  Immediate resistance is located at 7.293 (50%fib), any close above will push the pair towards 7.309(38.2%fib).

• Support is seen at 7.0280(Daily low) and break below could take the pair towards 7.273(61.8%fib).

Recommendation: Good to sell around 7.290 with stop loss of 7.250  and target price of 7.340