FxWirePro: USD/CNY edges lower amid dollar softness

• USD/CNY edged lower on Tuesday  as broad dollar weakness outweighed the impact of  soft Chinese manufacturing PMI data .

• China’s manufacturing sector contracted for a sixth straight month in September, an official survey showed Tuesday, signaling producers are holding out for more stimulus and greater clarity on a U.S. trade deal to revive demand.

• China’s official manufacturing PMI rose to a six-month high of 49.8 in September from 49.4 in August, beating forecasts of 49.6 but still below the 50 threshold that separates growth from contraction.

•The extended downturn highlights the twin challenges facing China’s economy weak domestic demand that has struggled to recover since the pandemic, and U.S. tariffs under President Donald Trump that have pressured Chinese factories and their overseas buyers.

• At GMT 11:18,the dollar was down 0.01% at 7.119 against Chinese Yuan .

•  Immediate resistance is located at 7.122(SMA 20), any close above will push the pair towards 7.141(38.2%fib)

• Support is seen at 7.101(23.6%fib) and break below could take the pair towards 7.097(Lower BB).

Recommendation: Good to sell around  7.120 with stop loss of 7.130and target price of 7.100