China's economy continued to grow in the fourth quarter.

The yuan depreciated at around 7.20 yuan per US dollar. After the People's Bank of China kept interest rates unchanged from the previous month. This makes investors disappointed that they will see further easing of monetary policy to support the economy's continued growth. As the Chinese economy expanded less than expected in the fourth quarter and strong US economic data, the Yuan continued to come under pressure.

China's economy expanded 5.2% in the fourth quarter, but fell short of market expectations of 5.3%, despite support from rising industrial production. But weakness in the real estate sector remains fragile and puts pressure on China's economic recovery. Meanwhile, the government still has no serious measures to stimulate the economy. Due to efforts to control government debt, economists believe that the PBoC will have measures to support the economy soon.

Foreign direct investment (FDI) in China fell 8% year-on-year, falling to 1.13 trillion yuan (US$157.1 billion) in 2023, showing that foreign investors are still not returning. Invest fully in China after the emergence of COVID-19. The investment capital decreased slightly in the manufacturing sector. But it fell sharply in the service sector. Investment in high-tech industries increased, such as medical equipment and electronics. Investment increased significantly from both France and the United Kingdom.

China's population shrank by 2.08 million to 1.409 million in 2023 after falling 0.85 million in 2022, marking two consecutive years of declines due to the impact of the pandemic and a sluggish economy. As a result, China's birth rate has dropped rapidly. The working age population aged 16 to 59 years accounted for 61.3% and the population aged 60 years and over accounted for 21.1% of the country's population.

China's fixed asset investment increased 3.0% year-on-year to 50.30 trillion yuan in 2023, slightly higher than market expectations. This was driven by growth in electric power, heat, gas and water production (23.0%) and mining (2.1%). In addition, investment in higher education expanded slightly at 0.4%.

China's retail sales rose 7.4% year-on-year in December. This slowed from an increase of 10.1% in the previous month. Sales of communication equipment slowed by 11.0%, while car sales slowed to 4.0%. Sales of electrical appliances, construction materials and office supplies shrank. Retail sales of clothing rose sharply as China's winter began.

Techical analysis data (5H)

Resistance: 7.1975, 7.1994, 7.2027

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 7.189 - 7.1923 but cannot break the support at 7.1923, you may set a TP at approximately 7.1994 and SL at around 7.1872 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 7.1975 - 7.1994, you may set a TP at approximately 7.2027 and SL at around 7.189 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 7.1975 - 7.1994 but cannot break the resistance at 7.1975, you may set a TP at approximately 7.189 and SL at around 7.2027 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 7.189 - 7.1923, you may set a TP at approximately 7.1872 and SL at around 7.1994 or according to your acceptable risk.

Pivot point January 22, 2024 03:50 PM. GMT+7