USD/CNY edges lower as China CPI shows modest 0.1% y/y rise in June

USD/CNY traded 0.15% lower at 7.2680 following China's June inflation data release, which showed consumer prices rising 0.1% year-over-year, slightly above the flat reading expected by economists. The National Bureau of Statistics attributed the modest price increase to ongoing government support policies aimed at stimulating domestic demand. The weak inflation reading reinforces expectations that the People's Bank of China will maintain its accommodative monetary policy stance to support economic growth. Month-over-month, CPI declined 0.2%, highlighting persistent deflationary pressures in the world's second-largest economy. The data suggests limited yuan appreciation potential as monetary policy divergence between the PBOC and Federal Reserve persists. Technical indicators show USD/CNY facing immediate resistance at 7.2750, with support established at 7.2600. Traders are monitoring upcoming Chinese GDP and retail sales data for further directional cues on the yuan's trajectory.