• USD/CNY edged lower on Tuesday as yuan strengthened as dollar eased on bets that the war in the Middle East may be shorter than expected.
•The dollar has been traders' shelter-of-choice as U.S. and Israeli attacks on Iran have all but frozen oil and gas exports through the Strait of Hormuz, sending energy prices soaring.
•Meanwhile, China's export growth picked up pace in the January-to-February period, expanding 21.8% from a year earlier in U.S. dollar value terms, while imports jumped 19.8%, customs data showed on Tuesday.
• Prior to the market opening, the People's Bank of China set the yuan's midpoint rate at 6.8982 per dollar, its strongest since April 25, 2023, some 91 pips weaker than a Reuters estimate.
• Immediate resistance is located at 6.6897(38.2%fib), any close above will push the pair towards 6.926(SMA 20)
• Support is seen at 6.856(Lower BB) and break below could take the pair towards 6.840(23.6%fib).
Recommendation: Good to sell around 6.900, with stop loss of 6.930 and target price of 6.850
