• USD/ CNY slipped to hit one month low on Monday as China's yuan was lifted by a dovish policy pivot by the U.S. Federal Reserve Chair Jerome Powell.
• Speaking Friday, Powell signaled the Fed may lower rates next month, highlighting mounting job market concerns and ongoing inflation risks.
• Markets now see an 87% chance of a 25 bps cut at the Sept. 17 Fed meeting, with 48 bps of easing priced in by year-end, CME FedWatch shows.
• The dollar has been under pressure in recent weeks as U.S. President Donald Trump's attacks on Powell and other Fed policymakers raised concerns about central bank independence.
• Meanwhile, Investors will watch U.S. trade and tariff talks with South Korea and India for potential market impact.
• At GMT 06:27,the dollar was down 0.24% at 7.148 against Chinese Yuan.
• Immediate resistance is located at 7.168(Daily high), any close above will push the pair towards 7.182(SMA20).
• Support is seen at 7.150(Daily low) and break below could take the pair towards 7.142 (Lower BB).
Recommendation: Good to sell around 7.160 with stop loss of 7.170 and target price of 7.140
