USD/CNY bounces-off five-month lows near 6.9260 post-China CPI miss

USD/CNY hit five-months lows as US-Iran tensions faded.
China’s CPI miss calls for more PBOC easing.
Focus shifts to US data for fresh trading impetus.

Dhwani Mehta FXStreet

USD/CNY opened with a bearish gap and went onto hit fresh five-month lows at 6.9257, as the Asian currency gained on some reprieve on the US-Iran geopolitical crisis. US President Trump said on Wednesday that Iran’s standing down and therefore the US will take no military response but only impose heavy economic sanctions.

Iran, in early hours of Wednesday, fired missiles on the US airbases in Iraq to avenge the US killing of its Quds Commander Soleimani last week.

Chinese Consumer Price Index (YoY): +4.5% (vs +4.7 % exp)

At the press time, the Chinese yuan is retreating from its five-month highs against the greenback, as downbeat Chinese inflation data continues to weigh. Softening price pressure in China calls for more PBOC easing, in an attempt to boost inflation and growth. USD/CNY recovers to 6.9301, still down 0.21% on the day.

Meanwhile, the spot also ignored the firmer Yuan fix by the Chinese central bank, as risk-on trades outweighed and weighed negatively on the dollar demand across the board. The US dollar index stalls its recent bullish momentum and consolidates near 97.30 region.

Attention now turns towards the US macro data and the US-China phase one trade deal signing due next week for further trading incentives on the pair. In the meantime, the risk trends amid looming Mid-East tensions will continue to have a significant bearing on the prices.

USD/CNY levels to consider

USD/CNY

Overview
Today last price	6.9301
Today Daily Change	0.0012
Today Daily Change %	0.02
Today daily open	6.9463

Trends
Daily SMA20	6.9854
Daily SMA50	7.0107
Daily SMA100	7.0614
Daily SMA200	6.9654

Levels
Previous Daily High	6.954
Previous Daily Low	6.9376
Previous Weekly High	6.9958
Previous Weekly Low	6.9583
Previous Monthly High	7.0737
Previous Monthly Low	6.9583
Daily Fibonacci 38.2%	6.9477
Daily Fibonacci 61.8%	6.9439
Daily Pivot Point S1	6.9379
Daily Pivot Point S2	6.9296
Daily Pivot Point S3	6.9215
Daily Pivot Point R1	6.9543
Daily Pivot Point R2	6.9624
Daily Pivot Point R3	6.9707

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD remains offered below 1.1600, seems vulnerable near multi-month low

The EUR/USD pair struggles to capitalize on the overnight bounce from the 1.1530 region, or the lowest level since November 2025, and lower for the third consecutive day on Wednesday. Spot prices slide back below the 1.1600 mark during the Asian session and seem vulnerable to slide further.

GBP/USD slips below key averages as geopolitical risks mount

GBP/USD fell about 0.35% on Tuesday, settling around 1.3350 after slipping below the 200-day Exponential Moving Average for the first time since early December. The pair has pulled back sharply from its late-January high near 1.3870, shedding over 500 pips in a series of lower highs and lower lows.

Gold rebounds ahead of US ADP, will it last?

Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.

Bitcoin, Ethereum and Ripple struggle for direction as consolidation persists

Bitcoin, Ethereum and Ripple prices trade with a cautious tone at the time of writing on Wednesday as upside momentum continues to fade across the broader crypto market. BTC remains within a parallel channel, ETH struggles below key resistance, while XRP remains fragile within a descending channel. These top three cryptocurrencies by market capitalization continue to struggle to establish a directional bias amid the consolidation phase.

Energy shock 2.0: Why rising Gas prices could hit the Euro

Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.

Ripple falters amid sell-off jitters and negative funding rates

Ripple (XRP) has come under pressure, drifting lower to $1.35 at the time of writing on Tuesday. The over 2% correction looks poised to erase the previous day’s gains, which lifted the remittance token to $1.42.