FxWirePro: USD/CNY eases on US -China trade talks uncertainty

• USD/CNY dipped on Friday as yuan strengthened as traders monitored ongoing U .S.–China trade developments.

•   China sharply expanded rare earth export controls on Thursday, tightening its grip on the sector ahead of talks between Presidents Donald Trump and Xi Jinping.

The U.S. escalated tensions with China by sanctioning roughly 100 individuals and entities, including a Chinese refinery and terminal facilitating Iran’s oil and petrochemical trade.

• Yuan optimism faces headwinds amid persistent economic and geopolitical strains between the U.S. and China.

•Traders will monitor next week’s data on new bank loan issuance in China to assess credit conditions and overall economic demand.

• At GMT 16:09,the dollar was down 0.04% at 7.124 against Chinese Yuan .

•  Immediate resistance is located at 7.133(Oct 9th hgh), any close above will push the pair towards 7.141 (Higher BB)

• Support is seen at 7.119(SMA 20) and break below could take the pair towards 7.103(23.6%fib).

Recommendation: Good to sell around  7.125 with stop loss of 7.140 and target price of 7.110