USD/CNY faces pressure as China accelerates power market reforms

USD/CNY is trading near 7.2850, showing signs of potential yuan strength as China's National Energy Administration announced plans to establish a unified national power market by year-end. This major infrastructure reform signals Beijing's commitment to economic modernization and energy security, potentially boosting investor confidence in Chinese assets. The initiative comes as authorities prepare for peak summer power demand, demonstrating proactive economic management. Market participants are closely watching how these reforms might enhance China's economic efficiency and attract foreign investment flows. Technical indicators suggest USD/CNY faces resistance at 7.3000, while support lies at 7.2700. A successful implementation of the power market reforms could strengthen the yuan further, particularly if it improves China's energy cost competitiveness and industrial productivity. Traders should monitor related policy announcements and their impact on China's economic outlook.