FxWirePro: USD/CNY neutral in the near-term, scope for downward resumption

• USD/CNY edged lower on Friday  as China's yuan firmed as a two-week ceasefire deal between the U.S. and Iran and a pick-up in domestic inflation lifted market sentiment..

• China’s factory-gate prices rose for the first time in 3½ years in March, official data showed, signaling early signs that the Middle East conflict is feeding cost pressures into the world’s second-largest economy.

•The central bank continued its operation since late November by setting a softer-than-expected guidance rate, a move that currency traders interpreted as an attempt to keep the market stable.

•Prior to the market opening, the People's Bank of China (PBOC) set the midpoint CNY=PBOC at 6.8654 per dollar, but 341 pips softer than    estimate.

• Market participants   focus will turn to China’s first-quarter GDP and a series of activity data, including consumption figures due next Thursday, for further insight into the economy’s health..

• Prior to the market opening, the People's Bank of China set the midpoint rate   at 6.8917 per dollar, its strongest since April 25, 2023, which was 93 pips weaker than a Reuters estimate.

•  Immediate resistance is located at 6.843(April 9th high), any close above will push the pair towards 6.872(38.2%fib)

• Support is seen at 6.827(23.6%fib) and break below could take the pair towards 6.816(Lower BB).

Recommendation: Good to sell  around 6.840 with stop loss of 6.930 and target price of 6.800