• USD/CNY hit 10 month low on Tuseday as yuan was aided by dollar softness and the strongest fixing since November.
• The dollar index hit an almost seven-week low Tuesday as markets prepared for U.S. data revisions that could point to softer employment conditions.
• Prior to the market opening, the People's Bank of China set the yuan midpoint rate at 7.1008 per dollar, its strongest since Nov. 6, 2024.
• Investors now await U.S. producer price data on Wednesday and consumer price data on Thursday for further rate cut cues.
• At GMT 11:28, the dollar was down 0.10% to 7.121 against the Chinese Yuan.
• Immediate resistance is located at 7.131(Daily high), any close above will push the pair towards 7.154(38.2%fib)
• Support is seen at 7.117(23.6%fib) and break below could take the pair towards 7.101 (Lower BB).
Recommendation: Good to buy around 7.125, with stop loss of 7.150 and target price of 7.100
