FxWirePro: USD/CNY climbs as trade uncertainty outweighs strong Chinese economic data

• USD/CNY rose  on Wednesday    as concerns over escalating trade tensions between the world’s two largest economies overshadowed better-than-expected Chinese economic data.

•Data released on Wednesday showed China’s GDP grew 5.4% year-on-year in the January-March quarter, the same growth rate as in the fourth quarter.

•Retail sales, a key gauge of consumption, rose 5.9% year-on-year in March after gaining 4.0% in January-February, while factory output growth quickened to 7.7% from 5.9% in the first two months.

• President Donald Trump has significantly increased tariffs on Chinese goods, leading Beijing to impose retaliatory duties on U.S. imports.

• The tariff volleys between the United States and China have traders concerned about global economic growth, with President Donald Trump's fluctuating policies adding to the uncertainty.

• At GMT 06:06, the dollar was up 0.11% to 7.323 against the Chinese Yuan.

•  Immediate resistance is located at 7.328(38.2%fib), any close above will push the pair towards 7.354(23.6%fib)

• Support is seen at 7.307(50%fib) and break below could take the pair towards 7.288(61.8%fib).

Recommendation: Good to buy around 7.320, with stop loss of 7.250 and target price of 7.380