• USD/ CNY declined on Thursday as China’s yuan firmed ahead key data on U.S. inflation and Chinese manufacturing activity.
• Traders are awaiting the release of the Fed’s preferred inflation measure, the Personal Consumption Expenditures (PCE) index, later on Friday to better assess its policy trajectory.
Investors are also eager to see updates on China’s economic recovery, with the latest purchasing managers’ index (PMI) scheduled for release on Saturday.
• Technical signals are bearish as RSI is at 33, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 7.1131 (23.6%fib), any close above will push the pair towards 7.1385(38.2%fib).
• Support is seen at 7.1034(Daily low) and break below could take the pair towards 7.093(Lower BB).
Recommendation: Good to sell around 7.1110 with stop loss of 7.1600 and target price of 7.0930
