The economy of China has grown better than expected.

The yuan has continuously depreciated, even though China's GDP figures remain strong. Analysts argue that sustaining robust growth in the first quarter necessitates continued monetary policy easing. However, they caution that facing pressure from the strengthening dollar may persist for some time due to the strong retail figures in the United States.

Chinese banks extended new loans of 3.1 trillion yuan in March, more than double the 1.45 trillion yuan in February, signaling renewed strength in domestic economic activity and a resurgence in credit demand. Meanwhile, social financing, a measure of credit and economic liquidity, increased to 4.87 trillion yuan in March.

Retail sales in China grew by 3.1% year-on-year in March, significantly slower than the 5.5% increase previously, mainly due to a slowdown in sales of gold, silver, and jewelry, while automobile sales declined by 3.7% after an 8.7% increase in the previous period, boosted by the electric vehicle trend.

China's unemployment rate decreased to 5.2% in March, down from 5.3% the previous month, in line with market expectations. Urban unemployment stood at 5.1%, with an average weekly working hours of 48.6. Additionally, rural migrant workers increased by 2.2% year-on-year, indicating a continuous decline in rural employment opportunities.

China's economy expanded by 5.3% year-on-year in the first quarter of 2024, higher than the market expectation of 5.0%, driven by continuous government support measures and increased consumer spending during the Chinese New Year holiday. However, data for March suggested a slower-than-expected growth in industrial production and retail sales, emphasizing the continued need for additional policy relaxation for the economy.

Industrial production in China grew by 4.5% year-on-year in March, lower than the market expectation of 5.4%, marking the slowest expansion in industrial output since last year. This was attributed to slowing growth rates in several sectors, particularly manufacturing, which has seen continuous slowdowns. The automotive industry, affected by trade tensions, experienced a decline, while general equipment manufacturing halted after a 4.1% increase in January and February.

Techical analysis data (5H)

Resistance: 7.2409, 7.2445, 7.2485

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 7.2293 - 7.2333 but cannot break the support at 7.2333, you may set a TP at approximately 7.2445 and SL at around 7.2257 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 7.2409 - 7.2445, you may set a TP at approximately 7.2485 and SL at around 7.2293 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 7.2409 - 7.2445 but cannot break the resistance at 7.2409, you may set a TP at approximately 7.2293 and SL at around 7.2485 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 7.2293 - 7.2333, you may set a TP at approximately 7.2257 and SL at around 7.2445 or according to your acceptable risk.

Pivot point April 16, 2024 03:09 PM. GMT+7