China's Inflation remains lower than expected.

The yuan remained stable at 7.12 yuan per dollar as investors showed no signs of panic despite the Chinese government's announcement of economic support. Last week, over 642.4 billion yuan was injected into the economy. However, weaker-than-expected trade balance figures—both in imports and exports—are prompting investors to wait for additional economic indicators to forecast further economic stimulus from the government.

In September, Chinese banks issued new loans worth 1.59 trillion yuan, up from 900 billion yuan in the previous month. Although the central bank’s credit expansion fell short of market expectations, the central bank remains optimistic that balanced monetary and fiscal measures will stimulate the slowing economy toward its 5% growth target.

China’s trade balance grew to USD 81.71 billion, up from USD 75.5 billion in the same period last year. This growth was driven by a slight increase in imports, with exports growing at a faster pace. Imports rose by 0.3% year-over-year, indicating a modest recovery in domestic demand. Most imports were from the U.S. and ASEAN countries, primarily consisting of ICs and automatic data processing equipment, reflecting China's growing need for advanced technology.

Exports from China grew by 2.4%, totaling USD 303.71 billion. This marks the smallest decline in export value over the past year. Despite trade barriers impacting some exports, the growth in exports to ASEAN countries increased by 5.5%, while exports to the U.S. grew by only 2.2%. Key export products remain plastic goods and electronics.

China’s annual inflation rate stood at 0.4% in September, below market expectations of 0.6%, underscoring the need for policies to support the current economic environment and mitigate rising deflationary risks. Non-food inflation decreased by 0.2%, driven by continued reductions in transportation costs and falling oil prices. Meanwhile, inflation in the real estate sector continues to show a downward trend, despite some government support.

Techical analysis data (5H)

Resistance: 7.1259, 7.1302, 7.1327

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 7.1166 - 7.1191 but cannot break the support at 7.1191, you may set a TP at approximately 7.1302 and SL at around 7.1123 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 7.1259 - 7.1302, you may set a TP at approximately 7.1327 and SL at around 7.1166 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 7.1259 - 7.1302 but cannot break the resistance at 7.1259, you may set a TP at approximately 7.1166 and SL at around 7.1327 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 7.1166 - 7.1191, you may set a TP at approximately 7.1123 and SL at around 7.1302 or according to your acceptable risk.

Pivot point October 17, 2024 10:33 PM. GMT+7