• USD/CNY strengthened on Tuesday as Chinese Yuan weakened on worries about the impact of U.S. reciprocal tariffs despite upbeat China manufacturing PMI data.
• The market sentiment remained tense as investors braced for U.S. President Donald Trump's reciprocal tariffs due to be announced on Wednesday
• Late Sunday, Trump announced that nearly all countries would face new tariffs this week, though he offered no specifics.
•On the data front, China's factory activity grew at its fastest rate in four months in March, driven by increased demand and strong export orders, according to a private-sector survey released on Tuesday.
• The Caixin/S&P Global manufacturing PMI rose to 51.2 in March, up from 50.8 in February, exceeding analysts' expectations of 51.1. A reading above 50 indicates expansion, while below 50 signals contraction.
• Immediate resistance is located at 7.274(50%fib), any close above will push the pair towards 7.280(Higher BB)
• Support is seen at 7.261(38.2%fib) and break below could take the pair towards 7.246(Lower BB).
Recommendation: Good to buy around 7.260, with stop loss of 7.210 and target price of 7.320
