The Chinese economy is still concerned due to a lessening manufacturing sector.
China's yuan has strengthened, even as trade balance figures fell more than expected. Investors believe that China's inflation rate is expected to rise again next year. Additionally, the Chinese government has announced new economic stimulus measures and is expected to continue monetary easing policies in the current situation. China remains concerned as domestic manufacturing activity contracts, and the trade surplus has continued to decrease.
China's trade surplus in October decreased significantly to just $56.53 billion from $82.35 billion compared to the previous year due to a larger-than-expected decline in exports. However, imports increased by 3.0%, reaching $218.3 billion, in line with the government's efforts to stimulate domestic demand.
Chinese exports decreased by 6.4% year-on-year, amounting to $274.83 billion, which was more significant than the anticipated 4.8% decline, indicating weakened foreign demand. The trade surplus with the United States decreased to $30.82 billion, while exports to Russia increased by a substantial 17%, primarily consisting of mineral and rare earth products.
The Manufacturing Purchasing Managers' Index (PMI) dropped to 49.5, lower than the market's expectations of 50.8, signifying the first contraction in manufacturing since July. This was due to a slight growth in new orders and manufacturing activity not fully recovering. Additionally, increased production costs led to higher product prices, and the global economic uncertainty led to a fourth consecutive month of declining exports.
On the other hand, China's Services PMI slightly increased to 50.4, largely supported by an increase in foreign tourists, resulting in increased sales. Prices of both goods and services remained high due to rising raw material costs, causing companies to attempt to pass on costs to consumers and reduce expenses. This had an impact on stable employment.
China's 10-year government bond yield dropped below 2.7% due to weaker-than-expected PMI figures, causing investors to worry about the country's economic recovery. However, the government's announcement of new economic stimulus measures is considered a significant factor contributing to the declining government bond yields, even as the currency continues to depreciate.
Techical analysis data (5H)
Resistance: 7.2851, 7.2862, 7.2871
Support: 7.2831, 7.2822, 7.2810
Pivot Points November 7, 2023 09:58 PM GMT+7
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
| Classic | 7.2810 | 7.2822 | 7.2831 | 7.2842 | 7.2851 | 7.2862 | 7.2871 |
| Fibonacci | 7.2822 | 7.2829 | 7.2834 | 7.2842 | 7.2850 | 7.2855 | 7.2862 |
| Camarilla | 7.2834 | 7.2836 | 7.2838 | 7.2842 | 7.2842 | 7.2844 | 7.2846 |
| Woodie's | 7.2810 | 7.2822 | 7.2831 | 7.2842 | 7.2851 | 7.2862 | 7.2871 |
| DeMark's | - | - | 7.2826 | 7.2840 | 7.2847 | - | - |
Buy/Long 1: If the price touches support in the price range of 7.2822 - 7.2831 but cannot break the support at 7.2831, you may set a TP at approximately 7.2862 and SL at around 7.2810 or according to your acceptable risk.
Buy/Long 2: If the price breaks the resistance in the price range of 7.2851 - 7.2862, you may set a TP at approximately 7.2871 and SL at around 7.2822 or according to your acceptable risk.
Sell/Short 1: If the price touches resistance in the price range of 7.2851 - 7.2862 but cannot break the resistance at 7.2851, you may set a TP at approximately 7.2822 and SL at around 7.2871 or according to your acceptable risk.
Sell/Short 2: If the price breaks the support in the price range of 7.2822 - 7.2831, you may set a TP at approximately 7.2810 and SL at around 7.2862 or according to your acceptable risk.
Technical Indicators November 7, 2023 09:58 PM GMT+7
| Name | Value | Action |
| RSI(14) | 35.264 | Sell |
| STOCH(9,6) | 23.460 | Sell |
| STOCHRSI(14) | 56.392 | Buy |
| MACD(12,26) | -0.010 | Sell |
| ADX(14) | 41.355 | Sell |
| Williams %R | -67.430 | Sell |
| CCI(14) | -49.3205 | Neutral |
| ATR(14) | 0.0070 | High Volatility |
| Highs/Lows(14) | -0.0070 | Sell |
| Ultimate Oscillator | 44.793 | Sell |
| ROC | -0.480 | Sell |
| Bull/Bear Power(13) | -0.0123 | Sell |
|
Buy:1 Sell:9 Neutral:1 Summary:Strong Sell |
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