FxWirePro: USD/CNY hovers near 3-1/2-year low ahead of U.S. data

• USD/CNY hovered near a 3-1/2-year low as investors awaited clearer signals from U.S. economic data and the Federal Reserve’s monetary policy outlook to determine the yuan’s next direction.

•U.S. inflation data due later this week will be closely watched for signs of how the Iran conflict has affected price pressures, with the results potentially shaping the Federal Reserve’s policy outlook after last week’s weak jobs report reduced expectations for further rate hikes.

• Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate   at 6.7900 per dollar, 403 pips.

•Since November 2025, the PBOC has repeatedly set the yuan’s daily reference rate below market expectations, reinforcing the view that policymakers are seeking to contain yuan gains while supporting stability in the foreign-exchange market..

•  Immediate resistance is located at 6.761(SMA 20), any close above will push the pair towards 6.775(38.2%fib)

• Support is seen at 6.742(23.6%fib) and break below could take the pair towards 6.734 (Lower BB).

Recommendation: Good to sell around 6.746, with stop loss of 6.780 and target price of 6.730