• USD/CNY traded flat near a 3-1/2-year on Wednesday as markets treaded water ahead of U.S. inflation data.
• Market participants looked ahead to the U.S. July PCE report and the Jackson Hole symposium for further guidance on the Fed’s interest-rate path.
•Prior to the market opening, the People's Bank of China set the midpoint rate at 6.7829 per dollar.
• The central bank has been gradually strengthening its daily yuan fixing, though the guidance remains weaker than market expectations.
• Prior to the market opening, the People's Bank of China set the midpoint rate at 6.7829 per dollar.
• The yuan has gained 1.0% against the dollar this month and is up 4.1% so far this year, ranking among Asia’s best-performing currencies.
• Immediate resistance is located at 6.740(SMA20), any close above will push the pair towards 6.752(38.2%fib)
• Support is seen at 6.717(23.6%fib) and break below could take the pair towards 6.709 (Lower BB).
Recommendation: Good to sell around 6.720, with stop loss of 6.730 and target price of 6.700
