USD/CNY holds at 7.0348 as PBOC maintains rates amid Middle East tensions

USD/CNY remained steady at 7.0348 after the People's Bank of China kept interest rates unchanged, defying market expectations for monetary easing. The PBOC's decision to shift focus toward fiscal support rather than rate cuts signals confidence in current policy settings despite global economic headwinds. Meanwhile, geopolitical tensions escalated with Saudi airstrikes in Yemen and renewed US-Iran friction, keeping oil risk premiums elevated and supporting the dollar's safe-haven appeal. Silver markets showed resilience, recovering from their sharpest 5-year selloff as precious metals head for their best annual performance since 1979. US oil inventories surprised to the upside, tempering immediate supply concerns. Technical indicators suggest USD/CNY consolidation near current levels, with resistance at 7.0500 and support at 7.0200. Traders should monitor developments in Middle East tensions and China's fiscal policy announcements for directional cues.