• USD/CNY edged higher on Friday as Yuan weakened after the Trump-Xi conversation offered no clarity on trade talks.
• The closely watched call came amid escalating tensions between Washington and Beijing over rare earth minerals, which had put a fragile trade truce at risk. However, statements from both sides offered no clear indication that the issue was resolved.
• On May 12, the U.S. and China reached a 90-day agreement to roll back portions of the steep, retaliatory tariffs imposed on each other since President Trump’s inauguration in January.
• Investors will turn their focus to a series of key Chinese economic releases next week, including inflation and trade data on Monday, as they look to assess the broader economic impact of Trump’s tariffs.
• At GMT 10:14, the dollar was up 0.11% to 7.182 against the Chinese Yuan.
• Immediate resistance is located at 7.206(38.2%fib), any close above will push the pair towards 7.223(May 20th high)
• Support is seen at 7.171(23.6%fib) and break below could take the pair towards 7.166 (Lower BB).
Recommendation: Good to sell around 7.185, with stop loss of 7.230 and target price of 7.170
