FxWirePro: USD/CNY sees some bounce after yesterday's fall

• USD/CNY edged higher  on  Friday  as  investors positioning cautiously ahead of U.S. inflation data later in the day..

•U.S. producer prices for final demand increased 0.4% in August after a revised 0.1% gain in July, data showed on Thursday.  

• Investor attention now turns to U.S. consumer price index data due later on Friday, one of the last major economic releases before the Federal Reserve meets next week.

• Expectations for a rate hike have already firmed after U.S. producer prices rose in August on higher costs for goods, airline fares and hospital services..

• Prior to the market opening, the People's Bank of China set the midpoint rate   at 6.7743 per dollar, its strongest since Feb 6, 2023, and 569 pips weaker than a Reuters' estimate.

•  Immediate resistance is located at 6.719(SMA20), any close above will push the pair towards 6.731(38.2%fib)

• Support is seen at 6.703(23.6%fib) and break below could take the pair towards 6.702 (Lower BB).

Recommendation: Good to sell around 6.715, with stop loss of 6.760 and target price of 6.700