• USD/CNY edged lower on Thursday after China reported first-quarter economic growth of 5%, beating market expectations.
• China’s economy gained momentum early in 2026, driven by a surge in exports, but the Iran war later pushed up energy costs and threatened global demand crucial to Beijing’s growth outlook.
• China’s economy grew 5.0% year-on-year in the first quarter, reaching the upper end of its 4.5%–5.0% annual target range and underscoring its resilience compared to much of Asia..
• Retail sales, a key measure of consumption, rose 1.7% last month, easing from 2.8% in January–February and continuing to lag industrial output, which increased 5.7% in March compared with 6.3% in the first two months.
• The yuan has gained 1.2% against the dollar this month and is up 2.6% year-to-date, supported by growing investor expectations of a diplomatic resolution between the U.S. and Iran.
• Immediate resistance is located at 6.829(April 14th high), any close above will push the pair towards 6.845(38.2%fib)
• Support is seen at 6.815 (23.6%fib) and break below could take the pair towards 6.798(Lower BB).
Recommendation: Good to sell around 6.817 with stop loss of 6.850 and target price of 6.800
