The People's Bank of China decided to maintain the interest rate in its latest meeting.

The yuan appreciated slightly while the U.S. dollar continued to weaken as investor expectations grew that the Federal Reserve would soon cut interest rates. The latest Federal Reserve meeting minutes revealed that most members agreed that a rate cut should be considered in the next meeting if domestic data trends continue as expected. Meanwhile, the People's Bank of China decided to maintain the interest rate in August, with the Chinese government remaining cautious about overly loose policies.

The People's Bank of China kept the interest rate unchanged in its August meeting, which aligned with market expectations. The one-year loan prime rate, a benchmark for most business and household loans, remained at 3.45%. Similarly, the five-year loan prime rate, a reference rate for housing loans, stayed at 3.85%. Governor Pan Gongsheng commented that the government continues to avoid any measures that might have an excessively severe impact on the currently fragile economy. Additionally, China continues to focus on expanding credit and financial supply.

China's industrial production grew by 5.1% year-on-year in July, slightly below the market forecast of 5.2% and slowing down from the 5.3% growth in the previous month. This indicates a slight deceleration in growth, mainly due to the slowdown in manufacturing activities as the economic recovery remains fragile, weakening domestic demand. Meanwhile, the electronics equipment industry continues to show growth, driven by ongoing technological developments.

China's fixed-asset investment increased by 3.6% year-on-year from January to July, indicating that companies still prioritize expanding production capacity. This growth was primarily driven by a more than 19.3% increase in mining activities and a 9.3% increase in manufacturing activities. Additionally, investment in primary manufacturing (which is basic, non-complex production) also grew by 3.3%, signaling a rising demand in fundamental production.

China's exports grew by 7.0% year-on-year in July, slowing from an 8.6% increase in June, marking the weakest export growth since April, as evidenced by the drop in export value to $300.56 billion. However, China's exports could still grow further as global demand continues to rise. Country-specific data showed that exports to the United States, South Korea, and Taiwan experienced the most significant growth.

Techical analysis data (5H)

Resistance: 7.1417, 7.1446, 7.1497

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 7.1286 - 7.1336 but cannot break the support at 7.1336, you may set a TP at approximately 7.1446 and SL at around 7.1256 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 7.1417 - 7.1446, you may set a TP at approximately 7.1497 and SL at around 7.1286 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 7.1417 - 7.1446 but cannot break the resistance at 7.1417, you may set a TP at approximately 7.1286 and SL at around 7.1497 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 7.1286 - 7.1336, you may set a TP at approximately 7.1256 and SL at around 7.1446 or according to your acceptable risk.

Pivot point August 22, 2024 08:20 PM. GMT+7