• USD/CNY rose to fresh four month high on Monday as tariff threats and mixed purchasing managers index (PMI) data weighed on yuan.
• On Saturday, U.S. President-elect Donald Trump threatened that BRICS member countries must pledge not to create or support a new currency to replace the U.S. dollar, or else they would face 100% tariffs.
• Caixin/S&P Global survey data showed a slight improvement in the official manufacturing PMI, but the non-manufacturing PMI, which covers construction and services, came in worse than expected over the weekend.
• At GMT 05:31,the dollar was up 0.35% at 7.267 against Chinese Yuan .
• Immediate resistance is located at 7.271(23.6%fib), any close above will push the pair towards 7.300(Higher BB)
• Support is seen at 7.231(38.2%fib) and break below could take the pair towards 7.201(50%fib).
Recommendation: Good to buy around 7.260 with stop loss of 7.200 and target price of 7.300
