• USD/CNY rose on Wednesday as China’s yuan weakened following the announcement of new tariff plans from US President Donald Trump.
• Trump told reporters on Tuesday that tariffs on pharmaceuticals and semiconductor chips would start at 25% or higher, increasing throughout the year. He also plans to impose similar tariffs on autos by April 2.
• On the economic front,China’s new home prices stalled in January, official data showed, indicating that demand in the struggling property sector remains weak despite ongoing government efforts to support sentiment.
•Since taking office, Trump has imposed a 10% tariff on all Chinese imports and delayed 25% tariffs on Mexican and Canadian goods by a month.
• At (GMT 10:34) dollar was trading up 0.09% at 7.284 against the Chinese yaun.
• Immediate resistance is located at 7.291(38.2%fib), any close above will push the pair towards 7.309 (23.6%fib).
• Support is seen at 7.278(50%fib) and break below could take the pair towards 7.263(61.8%fib).
Recommendation: Good to buy around 7.280 with stop loss of 7.240 and target price of 7.310
