China needs to revitalize its economy that has slowed down.

The weakening of China's currency, the yuan, to around 7.15 yuan per US dollar is due to increased economic uncertainty, reducing investor confidence. The country faces challenges due to its fragile domestic conditions. Despite this, the Chinese government emphasizes the importance of stimulating the domestic economy, implementing policies on fiscal and monetary adjustments to promote long-term growth.

The price of new homes in China decreased by 0.2% year-on-year in November, marking the fifth consecutive monthly decline. The real estate bubble issue remains highly vulnerable in China, even with multiple government measures in place to stimulate the market. The most significant drop was observed in Shenzhen, where prices fell by 3.1%.

China's unemployment rate remains relatively low at 5% in November, with the government forecasting it to be around 5.5% for the year. Additionally, there's a target to create approximately 12 million new jobs after implementing economic stimulus measures.

Retail sales in China expanded rapidly by 10.1% year-on-year in November, driven significantly by a 22% surge in clothing sales due to the onset of the Chinese winter season. Sales of electric vehicles also contributed to this growth in the automotive sector.

Industrial production in China increased by 6.6% year-on-year in November, a significant acceleration from the previous month's 4.6% growth. This marks the fastest growth in production since last year, primarily boosted by increased manufacturing and infrastructure growth, with some sectors such as electric machinery rising by 10.6% and various electronics equipment up by 10.6%.

The People's Bank of China expanded new loans by 1.09 trillion yuan in November, a substantial increase from the previous month's 0.74 trillion yuan, aimed at bolstering household and corporate confidence following a slowdown in growth. Household loans, including mortgages, increased to 2.925 trillion yuan, while business loans rose to 8.221 trillion yuan. Additionally, Mr. Pan Gongsheng, the President of the People's Bank of China, assured a continued relaxed monetary policy to aid China's recovery. The PBoC has reduced the Reserve Requirement Ratio (RRR) for the second time this year, with analysts expecting further reductions in the near future.

Techical analysis data (5H)

Resistance: 7.1457, 7.1492, 7.1511

Support: 7.1403, 7.1384, 7.1349

Source: Investing.com