• USD/CNY dipped slightly Monday as investors shrugged off soft economic indicators and turned their attention to trade talks between Beijing and Washington.
• China’s industrial output and retail sales fell short of forecasts in August, renewing calls for additional stimulus to support growth amid weak domestic demand and external risks.
• China’s industrial output rose 5.2% year-on-year in August, the slowest pace since August 2024 and down from July’s 5.7% increase, the National Bureau of Statistics reported Monday.
•August retail sales grew 3.4%, marking the slowest pace since November 2024 and falling short of the 3.9% expected, after a 3.7% rise in July.
• The weak August data left economists split on the need for further fiscal support to meet the 5% growth target, while manufacturers face subdued domestic demand and uncertainty over trade with the U.S.
• Immediate resistance is located at 7.141 (SMA 20), any close above will push the pair towards 7.153(38.2%fib)
• Support is seen at 7.115(23.6%fib) and break below could take the pair towards 7.102 (Lower BB).
Recommendation: Good to sell around 7.120, with stop loss of 7.160 and target price of 7.100
