FxWirePro: USD/CNY gains some ground as China's yuan eases amid softer guidance rate

• USD/CNY moved higher on Wednesday as the yuan slipped against the dollar following a weaker yuan fixing from China’s central bank for the first time in 11 sessions..

•Before the market opened, the PBOC set the yuan midpoint at 6.7468, ending a 10-session strengthening streak. The fixing was 497 pips weaker than the Reuters estimate.

• The yuan had strengthened steadily ahead of this week’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, but the PBOC remains concerned about an overly rapid appreciation.

• Markets will focus on whether Trump and Xi use their September 24 meeting to signal an extension of the trade truce struck last year, which helped shield the global economy from a major shock.

•  Immediate resistance is located at 6.710(SMA20), any close above will push the pair towards 6.720(38.2%fib)

• Support is seen at 6.695(23.6%fib) and break below could take the pair towards 6.690(Lower BB).

Recommendation: Good to sell around 6.710, with stop loss of 6.740 and target price of 6.690