FxWirePro: USD/CNY Slips as strong PBOC fixing lifts Chinese Yuan

• USD/CNY dipped on Friday as Chinese yuan was buoyed by a stronger central bank fixing and a softer greenback

• Before the market opened, the People's Bank of China (PBOC) set the yuan's midpoint at 6.7989 per dollar, its strongest daily fixing and the first below the key 6.80 level since February 10, 2023.

•The central bank has kept the yuan's fixing weaker than market expectations since late last year, though the gap has narrowed sharply from the 500-plus pips seen last month.

• The dollar eased a touch on Friday but was set to end the week little changed, with renewed safe-haven gains offset by receding expectations of a Federal Reserve rate hike.

•Investors will focus next week on China's second-quarter GDP and June trade and activity data for fresh insights into the outlook for the world's second-largest economy.

•  Immediate resistance is located at 6.784(SMA 20), any close above will push the pair towards 6.801(38.2%fib)

• Support is seen at 6.760(23.6%fib) and break below could take the pair towards 6.745 (Lower BB).

Recommendation: Good to sell around 6.780, with stop loss of 6.830 and target price of 6.760