• USD/CNY held near one month low on Tuesday as the People’s Bank of China (PBOC) continued to signal its commitment to currency stability.
• Prior to the market opening, the People’s Bank of China set the yuan’s daily midpoint rate at 7.1188 per dollar, providing guidance for the currency’s trading band.
• The PBOC has been setting a much stronger yuan fix than estimates over the past month.
• Market focus now turns to Friday’s release of the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation gauge, for signals on the U.S. rate-cut outlook.
• At GMT 06:02, the dollar was up 0.03% to 7.153 against the Chinese Yuan.
• Immediate resistance is located at 7.167(Daily high), any close above will push the pair towards 7.180(SMA 20).
• Support is seen at 7.149(50%fib) and break below could take the pair towards 7.140 (Lower BB).
Recommendation: Good to buy around 7.150, with stop loss of 7.170 and target price of 7.130
