FxWirePro: USD/CNY hits two month high,scope for further upside

• USD/CNY hit two month high     on Friday as China's yuan was weighed down by broader dollar strength   and soft domestic manufacturing data.

• The dollar stayed strong on Friday, heading for its best week since 2022 after Trump imposed steep tariffs on dozens of trade partners.

• Beijing faces an August 12 deadline to finalize a lasting tariff agreement with Washington, following preliminary deals in May and June aimed at halting escalating tit-for-tat tariffs and a rare earth mineral export freeze.

• On the data front, China's manufacturing sector contracted in July, with softer new business demand driving a pullback in production, a private survey showed on Friday.

•  Immediate resistance is located at 7.210(Daily high), any close above will push the pair towards 7237(50%fib)

• Support is seen at 7.199(38.2%fib) and break below could take the pair towards 7.176 (SMA 20).

Recommendation: Good to buy around 7.200 with stop loss of 7.180 and target price of 7.220