FxWirePro: USD/ CNY hits a fresh 32-month low,scope for further downside

• USD/CNY hit a fresh 32-month low on Monday after the PBOC set its strongest fixing in over two years, despite mixed Q4 economic data. .

•  China’s Q4 growth slowed to a three-year low as domestic demand weakened, and although full-year growth met Beijing’s target, trade tensions and structural imbalances continue to cloud the outlook..

•  December industrial output rose 5.2% y/y from 4.8% in November, but slowing retail sales growth dampened economic momentum into 2026 and reinforced calls for more stimulus.

•Prior to the market opening, the People's Bank of China set the midpoint rate   at 7.0051 per dollar, its strongest since May 18, 2023.

• At GMT 05:32,the dollar   was trading down 0.08 % at 6.962 against Chinese Yuan.

•  Immediate resistance is located at 6.978 (Jan 14th high), any close above will push the pair towards 6.988 (SMA 20).

• Support is seen at 7.960(23.6%fib) and break below could take the pair towards 6.955 (Lower BB).

Recommendation: Good to sell around  6.965 with stop loss of 6.990 and target price of 6.950