FxWirePro: USD/ CNY falls towards 6.785, bears keep the advantage

• USD/CNY fell on Tuesday  as the yuan strengthened after data showed China's factory activity returned to expansion in June.  .
• China's factory activity returned to expansion in June, supported by strong AI-related demand and robust exports ahead of U.S. tariffs, offsetting broader economic weakness.

• China's official manufacturing PMI rose to 50.3 in June from 50.0 in May, beating market expectations of 50.0 and signalling a return to expansion.

• The yuan has risen 2.9% against the U.S. dollar so far this year, before it reversed some gains as the greenback hovered near a one-year high.

•Markets are focused on the U.S. nonfarm payrolls report for June, due on Thursday, after the data beat expectations for three straight months and helped support a hawkish shift by the Federal Reserve.

•  Immediate resistance is located at 6.792(Daily high), any close above will push the pair towards 6.804(June 29th high).

• Support is seen at 6.784 (38.2%fib) and break below could take the pair towards 6.776(SMA 20).

Recommendation: Good to sell around 6.786 with stop loss of 6.800  and target price of 6.750