• USD/CNY traded flat near near 3 -1/2 year low on Tuesday as traders awaited for U.S. inflation data to be released this week for clues of the Federal Reserve’s rate path.
• All eyes are on the upcoming U.S. inflation data that could shape expectations for the Fed's next policy move.
•The U.S. producer price index data is due on Thursday, and the consumer price index data is scheduled for Friday.
•Meanwhile Fresh data on Tuesday showed China's export growth picked up pace last month, jumping 25% from a year earlier.
•Imports jumped 28.2%, compared with a 27.5% year-on-year increase in July and a forecast for a 30% rise.
• Immediate resistance is located at 6.725(SMA20), any close above will push the pair towards 6.738(38.2%fib)
• Support is seen at 6.708(Daily low) and break below could take the pair towards 6.758 (Lower BB).
Recommendation: Good to sell around 6.720, with stop loss of 6.760 and target price of 6.680
