China's exports have significantly decreased.

The yuan remains stable as the dollar weakens according to the United States business activity report, which declined in April, driven by declines in both manufacturing and services sectors, indicating a slowdown in the US economy. This keeps investors watching for the Fed's next decisions. Meanwhile, investors are also paying attention to the US GDP data on Thursday and the PCE announcement on Friday to gain deeper insights into monetary policy trends.

China's trade surplus decreased by $19.88 billion in March, from $78.43 billion compared to the previous year, lower than the market's expectations of $70.2 billion, mainly due to rapidly declining exports while imports from China decreased only slightly.

Imports into China decreased by 1.9% from the previous year to $221.15 billion, as domestic demand weakened again after receiving a boost from the Chinese New Year holiday, marking the first decline since November last year. Furthermore, the import decline also reflects concerns about persistent monetary tightening despite the renminbi's appreciation.

Exports from China decreased by 7.5% year-on-year to $279.68 billion, showing a decline again after increasing by 5.6% in the previous month, indicating a still sluggish economic recovery. Importantly, foreign demand for Chinese goods remains significant for cost-saving in manufacturing, which may help revive China's exports once again. However, China's exports only grew by 1.5% in the first quarter of 2024, with exports declining in Europe, South Korea, and Australia.

The People's Bank of China decided to keep interest rates unchanged in April, consistent with market expectations, following better-than-expected economic expansion in the first quarter of 2024. However, the yuan still faces pressure as the government continues efforts to stimulate continuous economic recovery after weak activity data announced in March. Real estate issues and lingering concerns over inflation remain major challenges in the country.

Foreign Direct Investment (FDI) in China decreased by 26.1% year-on-year to 301.67 billion yuan in the first quarter of 2024, reflecting the government's efforts to support the domestic economy, including efforts to attract foreign investment. Nevertheless, intense trade tensions between the United States and China continue to be a major concern for investors.

Techical analysis data (5H)

Resistance: 7.2463, 7.2465, 7.2468

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 7.2455 - 7.2458 but cannot break the support at 7.2458, you may set a TP at approximately 7.2465 and SL at around 7.2453 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 7.2463 - 7.2465, you may set a TP at approximately 7.2468 and SL at around 7.2455 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 7.2463 - 7.2465 but cannot break the resistance at 7.2463, you may set a TP at approximately 7.2455 and SL at around 7.2468 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 7.2455 - 7.2458, you may set a TP at approximately 7.2453 and SL at around 7.2465 or according to your acceptable risk.

Pivot point April 24, 2024 08:51 PM. GMT+7