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FxWirePro: USD/ CNY hits one-month low,scope for futher downside
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• USD/CNY fell to one-month low on Thursday as the yuan gained strength following the Fed’s decision to hold rates steady and the PBOC’s stronger yuan fixing.
• The Federal Reserve left interest rates unchanged, while Chair Kevin Warsh offered little clarity on how divisions within the rate-setting committee would be resolved.
•Fed funds futures now show a 42.6% chance of the Fed keeping rates unchanged at its September meeting, up from 24% before the latest policy decision, according to CME Group’s FedWatch tool.
• The yuan is up 0.4% against the dollar this month, and 3.5% firmer this year.
Recommendation: Good to sell around 6.760, with stop loss of 6.830 and target price of 6.720