FxWirePro: USD/CNY slips as yuan buoyed by firmer guidance and US -China trade optimism

• USD/ CNY edged lower  on Monday as China's yuan was supported by firmer-than-expected official guidance and optimism that trade tensions between  Washington and  Beijing was easing.

•U.S. President Donald Trump said that his proposed 100% tariff on Chinese goods would be unsustainable. He added that he plans to meet Chinese President Xi Jinping and expects relations with China to be fine

• Prior to market opening, the People's Bank of China (PBOC) set the midpoint rate at 7.0973 per dollar.

• The PBOC fixed the midpoint rate at 7.0949 per dollar ahead of market open, marking its firmest level since October 15, 2024, and 205 pips stronger than the   projection of 7.1154.

• China’s economic growth slowed to a one-year low in Q3, as weak domestic demand left the economy reliant on manufacturing output and exports, raising concerns about deepening structural imbalances.

• The economy grew 5.2% year-on-year in January-September, the National Bureau of Statistics data showed,on a quarterly basis, GDP grew 1.1% in the third quarter, compared with a forecast of 0.8% .

•  Immediate resistance is located at 7.129(38.2%fib), any close above will push the pair towards 7.142(Higher BB).

• Support is seen at 7.107(Lower BB) and break below could take the pair towards 7.100(23.6%fib).

Recommendation: Good to sell around 7.125 with stop loss of 7.145  and target price of 7.115