FxWirePro: USD/CNY trades firm on dollar demand

• USD/CNY firmed on  Wednesday as dollar strengthen  ahead of key U.S. economic data.

• Markets await Friday’s U.S. non-farm payrolls, seen as key for Fed policy and a likely quarter-point rate cut this month.

• On the data front, China’s services activity grew at the fastest pace in 15 months in August, supported by stronger domestic demand and a rebound in foreign orders, a private survey showed Wednesday.
 

China’s Caixin General Services PMI rose to 53.0 in August from 52.6 in July, the highest since May 2024, signaling stronger expansion as it stayed well above the 50-point threshold.

• China’s economy continues to face headwinds from a prolonged property downturn, weak consumer confidence, and sluggish private investment.

• At GMT 05:41, the dollar was up  0.10% to 7.145against the Chinese Yuan.

•  Immediate resistance is located at 7.150(Sep 2nd high), any close above will push the pair towards 7.165(Higher BB)

• Support is seen at 7.125(23.6%fib) and break below could take the pair towards 7.118 (Lower BB).

 Recommendation: Good to buy  around 7.140 with stop loss of 7.120 and target price of 7.180